Energy company EnBW seeks capital boost of up to 3.1 billion euros
Get Ready for EnBW's Capital Boost!
Looks like energy company EnBW is gearing up for a significant capital enhancement, with a hefty sum of up to 3.1 billion euros in the pipeline. This exciting move has been given the green light by the Supervisory Board, according to CEO Georg Stamatelopoulos.
The aim of this financial boost is to create a broader financial playground for all business sectors, as per the enthusiastic CEO. The proceeds will be utilized for potential investments in the energy system, with EnBW eyeing investments of up to 50 billion euros from 2024 to 2030 in the climate-neutral transformation of the energy system. That's quite a green mission!
Onwards and Upwards
The capital increase will be achieved through the issuance of new shares. EnBW anticipates finalizing this transaction by mid-July, with the listing of the new shares scheduled for July 18, 2025.
Interestingly, the state of Baden-Württemberg and the consortium OEW of nine Swabian districts each hold almost 47 percent of EnBW. These major shareholders have reportedly committed to purchasing up to a volume of 1.5 billion euros each of the new shares.
Up Close and Personal
Stamatelopoulos had initially proposed this capital increase to the primary shareholders last year. The annual general meeting of Germany's third-largest energy supplier initiated a possible capital increase earlier this year, and the board's decision is the next big step.
EnBW serves approximately 5.5 million customers. The company estimates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the current financial year will range between 4.8 billion and 5.3 billion euros. However, in the 2023 financial year, EBITDA fell from 6.4 billion to 4.9 billion euros due to fluctuations in gas and electricity prices.
Enriching the Enrichment (Oh, the Juicy Details!)
Now, if you're eager for more juicy details, let us break it down:
- The Board of Management of EnBW Energie Baden-Württemberg AG plans to increase the share capital by up to €138,677,772.80, resulting in a total share capital of up to €846,785,815.04.
- This increase will be achieved by issuing up to 54,171,005 new no-par value bearer shares.
- The new shares will carry full dividend rights retroactively from January 1, 2025.
- The new shares will be offered exclusively to existing shareholders through indirect subscription rights.
- Shareholders can subscribe to one new share for every five existing shares held, at a subscription price of €58.00 per new share.
- The subscription period is expected to run from June 30, 2025, to July 14, 2025.
- Unexercised subscription rights will expire worthless after the subscription period.
In summary, EnBW’s 3.1 billion euro capital increase is scheduled with a subscription period from June 30 to July 14, 2025, new shares listed by July 18, 2025, and major shareholders like the state of Baden-Württemberg poised to participate significantly to finance growth and strengthen financial stability. Let's cheer for a greener future! 🌍💥🚀⚽️💪🏼🔥💼💰📈📈📈🚀🚀🚀💰💰💰💰🔥🔥🔥💪🏼💪🏼💪🏼💪🏼💪 deuxième💃🏻💃🏻💃🏻💃🏻💃🏻💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎😎
The capital increase at EnBW, totaling up to 3.1 billion euros, is aimed to further enhance the financial capabilities across all business sectors (finance). This financial boost will be principally utilized for potential investments in the energy system, with a targeted investment of up to 50 billion euros from 2024 to 2030 in the climate-neutral transformation of the energy system, as stated by CEO Georg Stamatelopoulos (finance).
