RWE, Apollo Form JV to Fund Germany's Amprion Network Expansion
RWE and Apollo Global Management have announced a joint venture to fund investments in Germany's Amprion transmission network. The deal, set to close in the fourth quarter, will see Apollo provide €3.2 billion in equity, securing a 74.9% ownership. RWE, with a 25.1% stake, will maintain operational control and focus on its core activities of power generation and energy trading.
RWE, which has held a 25.1% stake in Amprion since 2011, will secure long-term funding for its share through this joint venture. Apollo will contribute the majority of the equity, with RWE retaining a significant minority stake. The partnership will allow RWE to focus on its core competencies while still benefiting from Amprion's growth.
The joint venture will fund Amprion's network expansion program, with Apollo providing funds upfront. These funds will be reinvested as needed to support the expansion. Dividends from Amprion will be shared between RWE and Apollo, reflecting their respective ownership stakes.
The transaction is expected to close in the fourth quarter, subject to usual closing conditions and regulatory approvals. This joint venture will enable RWE to secure long-term funding for its stake in Amprion, allowing it to focus on its core activities. Meanwhile, Apollo gains a significant stake in Germany's transmission network, with both parties set to benefit from Amprion's growth and dividend distributions.
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