Elia will increase its participation in Eurogrid by 20%. Elia indicated on Friday in a communiqué that it will boost its holding in Eurogrid by 20%, giving it an 80% stake in Eurogrid, the holding company for the German electricity transmission system operator (TSO), 50Hertz.
The price of the transaction, which is likely to be concluded in the second quarter of this year is €976.5 million. Elia has assured all stakeholders that the deal will benefit them and will not affect end-consumer electricity prices, which are subject to stringent regulation both in Belgium and Germany.
At the end of February, the Chinese public company, State Grid, announced its intention to reacquire a shareholding in the German network operator, 50Hertz, buying back the 20% share held by the Australian fund, IFM Investors. The transaction would have been for a total of €800 million. The announcement had caused a stir in Germany at the time.
Consequently, Elia is exercising its pre-exemption right to buy this shareholding.“This additional shareholding will strengthen the position of the Elia group, a major European player, thanks to its two TSOs in Belgium and Germany, by supporting the energy transition within Europe and the countries affected.”