First-round bids for stake in utility MVV due this week - sources

MVV Energie AG

11/11/2019 15:50

By Arno Schuetze and Christoph Steitz
    FRANKFURT, Nov 11 (Reuters) - First-round bids for a 45.1%
stake in German regional utility MVV Energie  MVVGn.DE , owned
by peers EnBW  EBKG.DE  and RheinEnergie  RHEI.UL , are due this
week, two people familiar with the matter said.
    The stake has a valuation of 828 million euros ($912
million) at MVV's current share price of 27.9 euros, according
to a Reuters calculation.
    Parties expected to submit bids include German asset manager
DWS  DWSG.DE , French private equity group Ardian, Australian
infrastructure investor IFM and Canadian pension fund OMERS, the
people said.
    Switzerland's Partners Group  PGHN.S  and insurer Allianz
 ALVG.DE  could also hand in offers, though it was not clear
whether the latter would come through with a bid if a parallel
auction for a minority stake in EWE  LANDWE.UL  is successful.
 urn:newsml:reuters.com:*:nL5N26V47X
    Swiss Life  SLHN.S  is also seen in the race, one of the
people said, adding the Abu Dhabi Investment Authority could
emerge as co-investor should consortia be formed.
    All parties either declined to comment or were not
immediately available for comment.
    One of the main issues will be the level of control MVV is
prepared to give any buyers of the stake, the people said,
adding that dividends and board representation was seen as less
controversial than a say on strategy.
    EnBW and RheinEnergie last month said they planned to pull
out of the Mannheim-based utility.  urn:newsml:reuters.com:*:nL5N26S4AO
    One of the people said that EnBW, which holds an individual
stake in MVV of 28.8%, will need to sell at a price of at least
33 euros per share to avoid write-downs at its pension fund,
where the stake sits.
    
($1 = 0.9074 euros)

 (Editing by Kirsten Donovan)
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269;
Reuters Messaging:
christoph.steitz.thomsonreuters.com@reuters.net))