Primeo Energie, EOS Holding SA, CSA Swiss Energy Infrastructure: Sustainable Swiss Solution for Alpiq

Source Press Release
Company Primeo Energie AGEDFEOS Holding SA 
Tags Corporate Deals, Deals, Refining & Marketing Activities, Power
Date April 05, 2019

EDF, Primeo Energie and EOS agree to acquire the 25% stake of Alpiq shareholder EDF

Following the approval of their respective governing bodies, Électricité de France (EDF), Primeo Energie (formerly EBM, member of the Consortium of Swiss Minority Shareholders) and EOS Holding SA (EOS) have signed an agreement to acquire the  EDF stake in Alpiq. The existing shareholders Primeo Energie and EOS are expanding their involvement and taking over the share of  EDF in equal measure. The purchase will be financed by CSA Energy Infrastructure Switzerland (CSA), the largest investment solution for Swiss energy infrastructure, in which 135 Swiss pension funds are invested, through mandatory convertible loans. The mandatory convertible loans will be converted into Alpiq shares upon maturity. Primeo Energie and EOS pave the way for a Swiss ownership structure of Alpiq.  

Alpiq is a major Swiss electricity producer with a highly flexible power plant park and an international retail and retail business, which ensures optimal marketing of the portfolio. With a share of 15 to 20 percent of Switzerland's total electricity production, Alpiq's generation plants play an important role in the implementation of Switzerland's Energy Strategy 2050.

With the purchase of the EDF equity package, the consortium of Swiss minority shareholders (including Primeo Energie), EOS and CSA now hold 88 percent of Alpiq. Ultimately, it is planned to take the company from the stock market. Due to the company's statutory opting-out, the transaction does not trigger a mandatory bid and a potential voluntary takeover bid would not be subject to a minimum bid under Swiss takeover rules. The acquisition of the shares requires the approval of the German Federal Cartel Office. The transaction volume of  EDF's stake in Alpiq amounts to around CHF 489 million, based on a purchase price of CHF 70 per Alpiq share.

With the completed sale of the Engineering Services business in 2018, Alpiq focused on its business model and strengthened the balance sheet. Alpiq will also increasingly conclude long-term purchase agreements. In the long term, the federal government's Energy Strategy 2050 includes the phase out of nuclear energy. Alpiq will therefore focus primarily on the preservation and further development of hydropower in Switzerland.

Dr. Conrad Ammann, CEO of Primeo Energie: "We are involved with the expanded participation in Alpiq as part of our power supply security strategy. Since 1930, we have been providing electricity procurement with long-term contracts instead of our own power plants. We will continue this successful strategy in the future. So we can ensure a stable, diversified power supply. As a quality provider, we are increasingly focusing on sustainable, intelligent and renewable energy solutions. »

Thierry Lainé, Director General EOS: "As a committed player in the Swiss energy sector, we want to help shape the future and contribute to the preservation of Switzerland's systemically important production of hydropower. The "new" Alpiq will be able to optimize the yield on its production, especially in the hydropower sector, where flexibility is a decisive factor. "

Dominik Bollier, Managing Partner CSEIP: "Structural change in the energy sector creates investment opportunities that we want to open up to CSA investors. With its stake in Alpiq, CSA offers its 135 Swiss pension funds long-term and sustainable indirect access to Switzerland's second largest hydropower portfolio. " 

Jens Alder, Chairman of the Board Alpiq: " We are pleased that our existing shareholders Primeo Energie and EOS are expanding their holdings and CSA as a recognized investor becomes a major shareholder of Alpiq in the Swiss energy infrastructure. This transaction will support the future development of the company. "

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd