Due diligence for sale process
The challenge
EnBW reviewed the partial sale of its subsidiary TransnetBW and launched a competitive sales process. This included preparing sales documents and collecting relevant data for potential buyers. There was an intensive exchange of information between TransnetBW and potential investors at various stages, including the management presentation, a Q&A process and expert sessions. This was a new approach for many employees, both at EnBW and TransnetBW. EnBW therefore decided to commission reputable consulting firms for different disciplines to support them in the sales process.
The solution
We at FMC were commissioned to carry out technical, organisational, IT and ESG due diligence for TransnetBW and to support the Q&A process, expert sessions and power plant visits during the bidding phase. We worked closely with TransnetBW and EnBW to prepare the due diligence report and made it available to bidders. We also specifically prepared TransnetBW’s technical team to deal with questions from investors and their technical advisory teams.
The conclusion
A transaction process like this requires a high degree of flexibility in order to take the latest market developments into account. We achieved this through a positive and productive dialogue with TransnetBW and EnBW and in May 2023, EnBW announced the sale of a 24.95% minority stake in TransnetBW to Südwest Konsortium Holding GmbH. In November 2023, EnBW announced the sale of the second tranche, also amounting to 24.95%, to KfW on behalf of the German Federal Government.
