28.05.2018

Elia receives notification from IFM that it intends to sell remaining 20% in Eurogrid, the holding company above German transmission system operator 50Hertz

Elia receives notification from IFM that it intends to sell remaining 20% in Eurogrid, the holding company above German transmission system operator 50Hertz

BRUSSELS/BERLIN 28/05/2018 – The Belgian transmission system operator (TSO) Elia System Operator SA/NV (‘Elia’) has received a notification from IFM Global Infrastructure Fund (‘IFM’) that it intends to sell its remaining 20% share in Eurogrid International (‘Eurogrid’), the holding company of the German TSO 50Hertz Transmission GmbH (‘50Hertz’). As the main shareholder of Eurogrid (80%), Elia now has two months to decide on whether it wants to exercise its pre-emption right. The notification follows an earlier transaction closed on April 26th 2018 when Elia increased its shareholding in Eurogrid from 60 to 80% and took full control of 50Hertz.

The notification from the Australian infrastructure fund IFM refers to an agreement with a third party for the acquisition of the remaining 20% in Eurogrid. The finalisation of the acquisition in April 2018 was a major step forward in realising Elia Group’s growth strategy. By increasing the share from 60 to 80%, Elia obtained full control of Eurogrid. As a result, the financials of Eurogrid and its affiliates are now fully consolidated in Elia’s group results. The transaction also allows 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. Elia and IFM have shared a successful period of co-control of 50Hertz since 2010. Now that Elia has received a second notification, the company has about two months to take a decision on exercising its pre-emption right. The possible transaction will be analysed in the interests of Elia Group and its stakeholders. As in the case of the earlier pre-emption right for the first 20%, any decision will take Elia’s aim of maintaining a strong investment grade rating into consideration.

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