FRANKFURT (Reuters) -German utility EnBW on Thursday said it would sell shares worth up to 3.1 billion euros ($3.6 billion) to help fund an ambitious 50-billion-euro investment push by the end of the decade.
The capital increase, which was previously flagged, will be completed by mid-July, with its top two shareholders – the German state of Baden-Wuerttemberg and local municipalities – to exercise subscription right of up to 1.5 billion euros each.
“Implementing this capital increase is important because it means we have greater financial headroom across all business areas and can safeguard our market position in key growth segments,” CEO Georg Stamatelopoulos said.
EnBW said the proceeds would be used to strengthen the company’s investment grade credit ratings.
($1 = 0.8529 euros)
(Reporting by Christoph Steitz, Editing by Miranda Murray)
