Australia's First State buys 45.1% of Germany's MVV for $816 mln (updated)

MVV Energie AG

02/04/2020 19:54

* First State to buy EnBW/RheinEnergie stake in MVV
    * Pays 25.43 euros per share for 45.1% stake
    * City of Mannheim to keep 50.1% stake in MVV

 (Adds details on deal, context)
    FRANKFURT, April 2 (Reuters) - Australian infrastructure
investor First State Investments has agreed to buy a 45.1% stake
in German regional utility MVV Energie  MVVGn.DE  for 753
million euros ($816 million), it said on Thursday.
    The stake, held by EnBW  EBKG.DE  and RheinEnergie  RHEI.UL 
is being sold at a price of 25.43 euros per share, First State
-- a unit of Mitsubishi UFJ Financial Group  8306.T  -- said, a
discount of 3.3% to Thursday's closing price.
    Reuters last week reported First State as the prospective
buyer of the stake, which had been put up for sale by EnBW and
RheinEnergie last year in a process run by Perella Weinberg.
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    "We are impressed by the great progress the company has made
in the renewable energy transition as well as by the excellent
position along the whole energy value chain," said Niall Mills,
the partner responsible for infrastructure at First State.
    "As the second major shareholder of the company we would
like to contribute our expertise in the areas of energy and
infrastructure to the benefit of MVV, its clients and the cities
and communities it supplies."
    Since the stake is above 30%, First State is obliged to make
a bid for all MVV shares under German takeover regulation but
the city of Mannheim, MVV's largest shareholder with a 50.1%
stake, will keep its stake, MVV said.
    Both First State and the city of Mannheim have an interest
in a stable free float of MVV shares. It currently stands at
4.8%.
    First State's investment comes less than four months after
French private equity group Ardian bought 26% in EWE
 LANDWE.UL , another German regional utility, underlining the
appeal of partly regulated power assets in Europe's top economy.
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($1 = 0.9232 euros)

 (Reporting by Christoph Steitz; Editing by Elaine Hardcastle)
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269;
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