VERBUND appreciates positive decision of majority shareholder
Today, the Council of Ministers took a positive decision regarding the participation of the Republic of Austria in Verbund AG’s capital increase.
Verbund AG appreciates the positive decision by the Austrian government to propose a bill to the parliament to obtain permission to subscribe to Verbund AG’s capital increase. The resulting enabling act allows the Republic of Austria to subscribe to the planned capital increase in the total amount of €1 Bn, in proportion to its current ownership of 51%, i.e. €510 MM, and thereby maintaining its legally required ownership.
The capital increase, representing Verbund’s first equity transaction since its IPO in 1988, allows for a more rapid realization of the company's investment plan, which mainly focuses on domestic hydropower projects and the modernization of the transmission grid.
With the clarification regarding the support of the majority shareholder as well as the support of other main shareholders EVN, Wiener Stadtwerke and TIWAG, Verbund AG is now in a position to continue preparation of the capital increase.
Verbund AG plans to invite its shareholders to an extraordinary shareholders' meeting in September 2010 in which the necessary resolutions can be made. It is expected that the capital increase and the placement of new shares on the market will be executed this year. The exact timing is mainly dependent on market conditions.