RWE reduces stake in VSE

HKCF acted as independent valuation advisor to RWE Beteiligungsgesellschaft mbH, the State of Saarland, Stadtwerke Homburg GmbH, KEW Kommunale Energie- und Wasserversorgung AG, Stadtwerke Merzig GmbH, Stadtwerke Saarlouis GmbH, SSW Stadtwerke St. Wendel GmbH & Co. KG, and VSE AG

RWE AG, one of Germany’s largest energy groups, has divested 19.33% of its shareholding in VSE AG, the regional utility based in Saarland. The transaction was approved by VSE’s shareholders.

Under the agreed structure, 15.33% of the shares were transferred to a group of municipal and regional utilities in Saarland, while a further 4% was acquired by the State of Saarland. The participating municipal entities had previously formed the Kommunale Beteiligungsgesellschaft Saar mbH in May, which now holds the acquired shares on their behalf.

The parties had already reached an understanding on the transaction in November 2011. The move is aligned with RWE’s divestment program, announced in February 2011, which includes the sale of selected regional subsidiaries. RWE stated that the sale not only contributes to greater financial flexibility, but also addresses “the clearly expressed desire for increased municipal involvement in shaping the energy transition.” Despite the divestment, RWE will retain majority ownership in VSE AG, holding 50% plus one share, and will continue as the company’s strategic partner. “This transaction strengthens local influence while maintaining RWE’s role as VSE’s long-term strategic partner,” said Bernd Widera, Member of the Management Board of RWE Deutschland AG and Chairman of the Supervisory Board of VSE AG.