Sale of VSE shareholding successfully completed

HKCF acted as exclusice M&A 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

The energy group RWE AG has successfully reduced its stake in VSE AG from 69.33% to slightly above 50%. The divested shares, representing approximately 19% of the company, were acquired for €83 million by a consortium of municipal utilities from Saarland and the State of Saarland. The transaction was officially confirmed on September 30.

The share package includes a direct transfer of 10% to Stadtwerke Homburg, Stadtwerke Saarlouis, Stadtwerke St. Wendel, Stadtwerke Merzig, and KEW Neunkirchen. An additional 5% has been temporarily allocated to a holding structure to allow participation from other local and regional utilities within Saarland. The State of Saarland will receive up to 4%, increasing its total shareholding in VSE to a maximum of 6.5%. The State has indicated willingness to redistribute part of its stake to additional municipal stakeholders upon request. RWE will retain a 50% plus one share controlling interest in VSE AG on a permanent basis. This ownership ratio, however, is not reflected in supervisory board representation. The board will be expanded from 18 to 21 members, with a clear majority to be appointed by Saarland stakeholders, under equal voting rights. The existing shareholders’ agreement with RWE, which grants VSE significant special rights and governance protections, has been extended from 2020 to 2032.

“This is a positive step for our region, as it strengthens local influence on energy policy,” said Minister President Annegret Kramp-Karrenbauer (CDU). Heiko Maas, State Chairman of the SPD, welcomed the agreement, calling it “a major success” for the State and its municipalities. Peter Gillo (SPD), Deputy Chairman of VSE’s Supervisory Board, emphasized the opportunity for improved market positioning through closer cooperation. Klaus Meiser, CDU parliamentary group leader, and the Verdi trade union also voiced support. The transaction further ensures the long-term security of more than 1,300 jobs within the VSE Group.

Source: Saarbrückener Zeitung