EDF, Cooperative Elektra Birseck (EBM) and EOS Holding SA have signed an agreement with regard to EDF’s disposal of its stake in Swiss power producer Alpiq. Under the agreement, EBM and EOS each will acquire half of EDF’s stake in Alpiq, which represents 25.04% of the company’s capital and voting rights.
This transaction values EDF’s stake at about CHF489 million (US$487.8 million), based on a purchase price of CHF70 (US$69.83) per Alpiq share. The shares purchase agreement includes potential earn out mechanisms.
The acquisition by EBM and EOS will be financed through mandatory exchangeable loans in Alpiq’s shares raised from CSA Energy Infrastructure Switzerland, a fund managed by Credit Suisse Energy Infrastructure Partners.
Completion of the transaction is subject to the approval by the German competition authority and is expected to occur the end of the first half of 2019.
EDF did not disclose the strategic reasons behind this sale.
Alpiq’s portfolio includes conventional and pumped-storage projects spread across continental Europe, with the highest concentration of its fleet residing in Switzerland, where some 60% of all energy consumed is generated by hydropower facilities.