Stadtwerke Leipzig sells 15.3% of KOM-STROM to Deutsche Essent

Deutsche Essent announced today that on 5 December, 2006, Stadtwerke Leipzig concluded an agreement to sell 15.3% of its shares in KOM-STROM to Deutsche Essent. Stadtwerke Leipzig thus reduces its holdings from 16.3% to 1.0%, while the majority share holder Deutsche Essent GmbH increases its holdings to more than 75%. Both parties agreed to keep the financial details confidential.

Stadtwerke Leipzig sells 15.3% of KOM-STROM to Deutsche Essent

"With Deutsche Essent, we have found the right partner for KOM-STROM, and regard this sale as an appropriate continuation of Deutsche Essent's initial involvement with KOM-STROM in 2004," said Wolfgang Wille, executive manager of Stadtwerke Leipzig. He adds, "We will, of course, retain an interest in KOM-STROM to the same extent as other public utility partners, and continue to follow and support their future development."

Paul van Son, executive manager of Deutsche Essent, added, "We very much appreciate the contribution of Stadtwerke Leipzig to the development of KOM-STROM, and we are glad that Stadtwerke Leipzig will continue their involvement amongst others via the supervisory board. Our goal is to further expand KOM-STROM's business in co-operation with other community utilities, and to make optimal use of the potential of the location close to the Leipzig EEX electricity exchange. In this context, we strive to welcome more public utility companies such as the KOM-STROM shareholders."

Stadtwerke Leipzig was one of KOM-STROM's first shareholders, and responsible for their development into an approved energy trader and partner for public utility companies. With markets only just emerging, energy trading is a very complex business which requires great entrepreneurial commitment.

With its contribution to strengthening Leipzig as an energy hub, plus the creation of almost 40 long-term jobs for qualified employees in the region, Stadtwerke Leipzig has also shown an attractive economical commitment. "At Stadtwerke Leipzig, we are confident that we can write more success stories like this," stated Wolfgang Wille.

Deutsche Essent GmbH
Deutsche Essent GmbH, Düsseldorf, has been operating since 2000 as a holding company for the German companies associated with the largest energy supplier in the Netherlands, Essent N.V., Arnhem. It follows a long-term growth strategy and has a 51-percent share in swb AG, Bremen. Through swb AG, the company also has shares in suppliers in Bremerhaven, Bielefeld, Gütersloh, Soltau, Greifswald, and Ahlen. Deutsche Essent GmbH has also majority stake in KOM-STROM AG in Leipzig, through which it is further expanding its operations in the electricity sector. Deutsche Essent is also active in the natural gas market and is consolidating this business segment via novogate GmbH. novogate is a joint subsidiary of Deutsche Essent and Bayerngas GmbH. Deutsche Essent continues to maintain a gas reservoir in Epe. Deutsche Essent GmbH is responsible for wind energy operations for the complete group. With an installed load of about 480 MW, it is one of the leading wind energy operators in northwest Europe.

Stadtwerke Leipzig
Stadtwerke Leipzig GmbH produces electricity and warmth and distributes electricity, gas and long-distance heating in the net area of the city Leipzig. The enterprise had in the year 2005 on average 1,192 employees and gained a turnover of approximately 686 million euro. In the context of their growth strategy Stadtwerke Leipzig have majority stakes in three long-distance heat supply enterprises in Poland, among them in Danzig. In 2005 the German wide electricity business with key account customers was further developed. Beyond that the enterprise offers successfully energy services, invests in the prosperous business in the range of renewable energies (at the end of 2005 the biomass power station of the Stadtwerke Leipzig in Bischofferode went on stream) and offers world-wide consulting services.

Published: 05 December 2006