(IN BRIEF) State-owned electric power transmission operator ČEPS has finalized the sale of its subsidiary, RWE Gas Storage CZ, to RWE, a German energy company. The Czech Republic’s government approved the purchase, and the contract was signed recently. RWE Gas Storage CZ is a key player in the Czech Republic’s gas storage landscape, operating six underground storage sites with a total capacity of over 2.7 billion m³. The sale includes the entire workforce of 250 employees and comes at a purchase price of €360 million. The transaction, aimed at streamlining RWE’s portfolio, awaits regulatory approval and is expected to conclude in 2023.
(PRESS RELEASE) ESSEN, 24-Aug-2023 — /EuropaWire/ — RWE AG (ETR: RWE), a German multinational energy company, and State-owned electric power transmission system operator ČEPS, a.s., has reached an agreement for the sale of its subsidiary RWE Gas Storage CZ, s.r.o. The Government of the Czech Republic granted its approval on Wednesday, and the purchase contract was formally executed today.
RWE Gas Storage CZ, s.r.o. stands as the largest operator of gas storage facilities in the Czech Republic, boasting six underground gas storage sites with a cumulative operating volume surpassing 2.7 billion m³. The sale encompasses the entirety of the company, including its dedicated workforce of 250 employees. The negotiated purchase price, reflecting the equity value, stands at €360 million.
Given that gas storage activities do not align with RWE’s core business strategy, the company has opted to divest its Czech business while maintaining its gas storage operations within Germany. RWE’s storage facilities in Germany, characterized by their salt caverns and geological attributes, are primed to accommodate hydrogen storage due to their distinctive features.
The transaction, contingent upon regulatory clearance, is anticipated to conclude in 2023. This strategic move underlines RWE’s commitment to streamlining its portfolio and directing its focus towards its core competencies.
Markus Krebber, CEO of RWE AG: “We are delighted to have found a competent and experienced buyer in ČEPS, for whom our Czech gas storage business is of key strategic significance. This provides certainty for the workforce and the opportunity to continue to evolve both the company and its business. RWE Gas Storage CZ is a profitable and established company that plays an important role in security of supply in the Czech Republic.”
“ČEPS, a.s. will finance the purchase in the short term from the surplus of its own resources which results of a significant drop in the costs of ancillary services and the drop in prices of electricity purchased to cover losses in the transmission system. The company will also use proceeds from cross-border capacity auctions,” says Martin Durčák, chairman of the board of ČEPS, a.s.
“ČEPS is the sole national transmission system operator, responsible for the transmission of electricity and the proper operation of the electricity system, and thus also for the safety and reliability of electricity supply in the Czech Republic. The company is wholly owned by the state, with 100% of the ownership rights exercised through the Ministry of Industry and Trade. The purchase of the gas storage facilities by ČEPS is therefore a logical step in government activities to further strengthen the Czech Republic’s security of supply,” says Josef Síkela, Minister of Industry and Trade.
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SOURCE: RWE AG