Stuttgart / Karlsruhe (dpa / lsw) – Rarely has a Prime Minister got himself into as much trouble going it alone as Stefan Mappus (CDU) did in 2010 with the billion-dollar purchase of EnBW shares. The deal was unconstitutional because Mappus acted past the state parliament, employed a committee of inquiry and brought the then head of government into political sideline.
But is the purchase, which was completed ten years ago on December 6, in the end good or bad for taxpayers in the Southwest? A look at the share price currently looks cheap. The rate has been well over 50 euros since September. On December 6, 2010, the country paid € 4.67 billion to the French energy company EDF for 112.5 million shares. Makes 41.50 euros per share. Today was a full book profit.
The purchase of the 45 percent stake in the company was financed through loans for which interest is due every year. Mappus’ idea was to pay the interest with the EnBW dividends. The business should be self-financing.
This has not worked well so far and, according to the state-owned company Neckarpri, whose purpose is to hold and finance the EnBW shares, poses future risks. The energy company’s dividend for 2019 is 70 cents per share. 73 cents would currently be needed to pay the interest. In the past few years things have looked much worse. For 2018 EnBW paid 65 cents, for 2017 it was 50 cents. In 2016, business was so bad that the dividend was canceled.
At EnBW, the current figures look decent despite the coronavirus pandemic. The company, with more than 24,000 employees, has been massively redesigning its business model for several years. Away from nuclear and coal to wind, sun and technology.
According to the Neckarpri annual financial statements of June 30, the majority of the financing runs through bearer bonds with interest rates between a good 0.52 percent and a good 2.33 percent. It is possible that the interest burden will decrease in the short term if 400 million euros have to be borrowed next July, which has so far been given interest at almost 2.3 percent. The longest term with a volume of 1.5 billion euros extends into 2047. From Neckarpri’s perspective, however, there is a not inconsiderable interest rate risk in the future.
The Ministry of Finance announced that in the medium term “an option to repay financial liabilities would be sought and then prepared accordingly in due course”. However, there are no considerations to sell EnBW shares.
From the point of view of the State Ministry, the work of the past ten years is happily bearing fruit, but looking back is critical: “A good deal should always include the fact that it is legally concluded. it was done in an unconstitutional manner, “said a spokesman.
In addition, Neckarpri GmbH is still recording an annual deficit after ten years. The state provided guarantees in the billions and grants of more than 311 million euros and, together with the Zweckverband Oberschwäbische Elektrizitätswerke (OEW), managed a capital increase.
The energy expert Claudia Kemfert from the German Institute for Economic Research (DIW) does not consider the state’s participation to be a disadvantage, on the contrary: “The state participation can ensure that the group consistently implements the energy transition and invests in a targeted manner.” The change from a former nuclear concern to a corporation that is implementing the energy transition in all its facets – from renewable energies to the traffic transition, including decentralized electromobility and storage – is remarkable, says the professor.
After ten years, there are relatively mild reactions from state politics. Participation in EnBW is particularly good because of the challenges posed by the energy transition.
For the CDU member of the state parliament Paul Nemeth, the expectations have not been met in financial terms. In terms of energy policy, however, EnBW has set important accents for the energy transition in Baden-Württemberg. “This serves our security of supply and the transformation to renewable energies. One can therefore hope that the deal will be worthwhile for the country in the long term.”
From the point of view of the SPD MP Gernot Gruber, the sale of EnBW shares to EDF in 2000 was a political mistake. Therefore, his criticism of the buyback is focused on the unauthorized solo effort of ex-Prime Minister Mappus and the share price, which is well above the market price. “It is positive that EnBW is relying more heavily on the expansion of renewable energies than other large energy giants and is therefore on a good economic course,” emphasizes Gruber.
The FDP energy politician Daniel Karrais emphasizes that because of the increased share value, the purchase did not have a negative effect on the taxpayer. “However, the fiscal aspect was not decisive for the FDP.” An EnBW with state participation is a favorable combination due to the challenges of the energy transition.
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