ESSEN (dpa-AFX) - RWE AG (RWEOY, RWE.DE), a German energy company, Tuesday said that it has agreed with the five shareholders of M31 to buy indirect shares in Amprion, a transmission system operator in Germany, for EUR 3.6 billion. The transaction is anticipated to add to the earnings per share of RWE from day one.
Amprion has two shareholders, M31 and RWE Alkaios. M31 holds 74.9% of the shares and is a consortium of predominantly German institutional financial investors. RWE Alkaios, a joint venture between RWE and Apollo Global Management, holds the remaining 25.1% in Amprion. Post transactions, RWE will also become a shareholder in M31.
Upon the completion of the acquisition, RWE's total share in Amprion will increase to pro rata 55%.
Markus Krebber, CEO of RWE AG: 'We are expanding RWE's portfolio into grid infrastructure. By increasing our stake in Amprion and providing additional funding for the expansion of Germany's transmission grid, we gain further attractive growth opportunities. These complement our existing investment plans in renewables, battery storage and flexible generation. The transactions increase earnings per share from day one. For 2031, we intend to raise our target from €4.40 to €4.55 per share.'
The acquisition will be fully financed through an equity capital raise. It provides for the issuance of 36.1 million new bearer shares and the selling of up to 38.2 million treasury shares, representing up to 10% of the share capital.
The shares are expected to be placed with institutional investors by way of an accelerated book building process. RWE expects gross proceeds of approximately EUR 4 billion.
All transactions are expected to be closed in the third quarter of fiscal 2026.
In addition, RWE plans to invest EUR 6.5 billion in grid expansion in Germany through 2031. About EUR 2.5 billion by 2031 had already been allocated for investment requirements relating to the existing RWE-Apollo share in Amprion. An additional EUR 4 billion has been earmarked for the same period in Amprion. This will also be fully funded via the equity capital raise and RWE's available financial headroom.
The company has reaffirmed its dividend target of EUR 1.32 per share for fiscal 2026 and committed to raise the dividend by 10% a year.
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