EnBW Could Seek Bids Worth Billions on East German Assets

22 October 2009 (Last Updated October 22nd, 2009 18:30)

EnBW Energie Baden-Wuerttemberg AG, Germany’s third-largest power supplier, hopes to raise as much as €950m ($1.4bn) in its biggest asset sale, sources close to the deal have revealed. GESCO, an eastern German utility holding company for which EnBW is accepting bids until the beginning

EnBW Energie Baden-Wuerttemberg AG, Germany’s third-largest power supplier, hopes to raise as much as €950m ($1.4bn) in its biggest asset sale, sources close to the deal have revealed.

GESCO, an eastern German utility holding company for which EnBW is accepting bids until the beginning of next week, may fetch €700m to €950m, Bloomberg has uncovered.

Australian bank Macquarie Group may be among the bidders, according to unnamed sources interviewed by the news agency.

EnBW must sell GESO to gain regulatory approval to buy holdings in German utility EWE AG and Verbundnetz Gas or VNG, as it expands in natural gas.

Dresden-based GESO controls stakes in one regional power and gas provider, two regional network operators and eight public utilities, and has 3,000 employees in eastern Germany, according to the company.

EnBW has so far declined to comment on details of the transaction.

The asset sale would be EnBW’s biggest. EnBW’s main German competitors are E.ON AG, the country’s largest utility, and RWE AG