The City of Hamburg intends to acquire 25.1% of Vattenfall’s electricity distribution and district heating networks in Hamburg, while Vattenfall will retain the operational management of the networks.
The two businesses have been valued by independent auditors at about EUR1.9bn.
The purchase price for the 25.1% shares in the electricity distribution and the district heating businesses amounts to EUR463.1m, of which EUR138.1m pertains to electricity distribution and EUR325m to district heating.
Payment is expected to be effected during next year, and the transaction is subject to approval by the Hamburg Parliament.
The cooperation between the City of Hamburg and Vattenfall includes an energy concept on future projects of both parties.
Vattenfall Business Division Production head and Country Manager Germany Tuomo Hatakka said with this partnership, Hamburg and Vattenfall make a positive contribution to the further development of the German energy industry at a time of radical policy change.
