Stadtwerke Stendal, Germany

Situational Analysis

The transaction was triggered by the German Cartel Office’s condition that E.ON Avacon divests its shares in Stadtwerke Stendal. Stadtwerke Stendal is the local utility in Stendal with revenues of approx. EUR50m.

E.ON Avacon, the regional subsidiary of E.ON owned a 37.45% stake in Stadtwerke Stendal since 2003.

The City of Stendal acquired a stake of 25% in Stadtwerke Stendal from E.ON Avacon, bringing its stake to a majority of 50.1% in Stadtwerke Stendal.

Such transactions requiring divestment because of cartel considerations are becoming more prevalent in the German market.

Fieldstone Role

Fieldstone acted as the financial advisor to the City of Stendal on the structuring and negotiation of the acquisition and shareholder agreements.