35.3% stake in EAM transferred to municipalities

HKCF acted as exclusive M&A advisor to twelve counties and the City of Göttingen

The re-municipalization of Energie aus der Mitte GmbH & Co. KG (EAM) is nearing completion. A total of 109 municipalities have agreed to acquire a 35.3% equity stake in the regional utility company. On November 10, mayors and local representatives convened in Kassel to formally sign the participation agreements. The transaction marks one of the largest municipal energy ownership transitions in Germany to date. “From a logistical standpoint, coordinating over 100 local authorities has been a considerable undertaking in recent months,” noted an EAM spokesperson. “We couldn’t even fit everyone into a single group photo.”

The transaction follows the landmark 2013 acquisition of EAM (formerly E.ON Mitte) by twelve counties and the City of Göttingen from E.ON for over €600 million. At the time, it was agreed that local concession-granting municipalities would have the opportunity to join as shareholders in a second phase. While the original plan had envisioned transferring up to 49.9% of the shares to municipalities, only 35.3% were ultimately placed. According to sources close to the process, around 20 municipalities opted out—some citing guarantee risk, others pursuing alternative energy structures, such as forming their own municipal utilities.

The 109 new shareholders will now coordinate with the original counties and the City of Göttingen to restructure loan guarantees with the three lead financing banks. Due to the highly complex structure, no official transaction price has been disclosed. However, a preliminary figure of €480 million had previously been mentioned for the full 49.9% stake. The remaining 15% may become available for purchase at a later stage.

With the inclusion of the new partners, EAM now counts 122 shareholders. Governance has been designed to ensure all shareholders are represented, with interests coordinated through three regional holding entities: EAM Nord, EAM Mitte, and EAM Süd. While most participants are from Hesse and Lower Saxony, municipalities from North Rhine-Westphalia, Thuringia, and Rhineland-Palatinate are also involved. “We welcome every municipality that has joined the EAM shareholder group,” the company stated. The closing of the 35.3% stake transfer is scheduled for December 19. The transaction was advised by HKCF Corporate Finance.

Source: energate messenger+