HGV acquires Hamburg district heating network from Vattenfall
Hamburg — Allen & Overy LLP has advised Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement (HGV), the investment holding company of the Free and Hanseatic City of Hamburg (FHH), on the acquisition of the remaining shares in Wärme Hamburg GmbH from Vattenfall. Based on the agreed minimum purchase price of 950 million euros, HGV paid a purchase price of 625 million euros for the remaining 74.9 percent of the shares.
The company operates the Hamburg district heating network as well as local generation facilities, e.g. the Wedel and Tiefstack combined heat and power plants. At the same time, the Wedel combined heat and power plant had to be spun off from another company in a parallel project and transferred to the target company. Until now, the FHH owned 25.1 percent of the district heating company. Although the acquisition was made by exercising a purchase option negotiated in implementation of the “Our Hamburg — Our Network” referendum, the transaction ultimately took more than a year to complete.
The Allen & Overy team had already advised HGV in 2011 on the acquisition of strategic stakes in the companies that operate the supply networks in Hamburg for electricity, gas and district heating. In addition, Allen & Overy assisted HGV in the step-by-step implementation of the full buyback of Hamburg’s energy networks following the adoption of the referendum. The current transaction thus marks the conclusion of a series of acquisitions in which FHH has already taken over Stromnetz Hamburg GmbH and the corresponding service areas, including metering and support for transport facilities, from Vattenfall and Gasnetz Hamburg GmbH from E.ON.
By buying back the energy infrastructure, the Hamburg Senate is laying the foundation for a successful energy turnaround in Hamburg. The Hanseatic City aims to significantly reduce greenhouse gas emissions. The transaction is regarded as the final milestone in the complete remunicipalization of Hamburg’s energy supply.
The Allen & Overy team included Partner Dr. Helge Schäfer and Counsel Dr. Rüdiger Klüber (joint lead), Associates Dr. Moritz Merkenich and Dr. Moritz Meister (all Corporate/M&A, Hamburg), Partner Dr. Heike Weber and Senior Associate Tim Spranger (both Tax, Frankfurt), Partner Dr. Ellen Braun (Antitrust, Hamburg) as well as Partner Jan-Erik Windthorst (Frankfurt), Counsel Dr. Alice Broichmann (Munich) and Senior Associate Dr. Nicolas Gillen (all Dispute Resolution, Frankfurt).
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