On March 23rd 2018, Elia announced its decision to exercise its pre-emption right to acquire an additional 20% stake in Eurogrid International SCRL. The finalisation of the acquisition announced today follows the company’s satisfaction of all the conditions related to the transaction, including the clearance of the European Commission.
The finalisation of this acquisition is a major step forward in realising Elia Group’s growth strategy. It will allow further strengthening of the cooperation between Elia and 50Hertz, and underscores Elia’s ambition to be one of the leading transmission system operators in Europe. The transaction enhances the Group’s profile and resources, enabling it to realise a reliable, sustainable, affordable and integrated power system and will not affect the tariffs for the end consumer, which are regulated in the respective countries.
By closing of the transaction, Elia obtained full control of Eurogrid and the financials of Eurogrid and its affiliates will be fully consolidated in Elia’s group results going forward. The payment of €976,5m for the 20% stake increased by an amount of €12,16m for interest will be refinanced through a mix of hybrid and bond, as previously announced.
Elia decided to exercise its pre-emption right after the IFM Global Infrastructure Fund, a fund advised by IFM Investors Pty Ltd, stated that it intended to sell half of its 40% shareholding in Eurogrid on February 2, 2018. Now the transaction is completed, Elia owns 80% of Eurogrid and IFM will retain the remaining 20% stake. Elia and IFM have shared a successful period of co-control in 50Hertz since 2010. While Elia has a pre-emption right on IFM’s residual shareholding, Elia will be pleased to continue working with IFM as a financial investor with minority rights in 50Hertz.
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