Alpiq successfully divests AVAG interest

Lausanne - Alpiq has sold its interest in Alpiq Versorgungs AG for a price of CHF 312 million to a consortium comprising EBM Netz AG, Städtische Betriebe Olten and UBS Clean Energy Infrastructure Switzerland. The proceeds from the sale will reduce the company’s net debt and strengthen the balance sheet. Alpiq is continuing to consistently implement the Group’s transformation.

Alpiq has sold its 96.7% share in Alpiq Versorgungs AG (AVAG) in Olten for CHF 312 million to a consortium, contingent upon approval by authorities if required. The consortium comprises EBM Netz AG, Städtische Betriebe Olten (sbo) and UBS Clean Energy Infrastructure Switzerland. EBM Netz AG holds an interest of about 67% in the consortium, sbo is represented with approx. 5%, and UBS Clean Energy Infrastructure Switzerland holds approx. 28%. The share purchase agreement for the Alpiq interest in AVAG was signed on 3 June 2016. Alpiq will use the proceeds from the sale of the AVAG interest to further reduce net debt. On 13 November 2015, Alpiq announced that it would review the possibility of selling its AVAG interest.

Alpiq is continuing to consistently implement the Group’s transformation. In this context, the top priority is ensuring capital market viability. With the opening of up to 49% of the hydropower portfolio to new investors, Alpiq is reducing its dependency on wholesale prices and decreasing net debt. In addition, opportunities to divest other non-strategic assets will be assessed and consistently implemented. The already initiated cost reduction programme and revenue improvement measures will be rigorously pursued. Energy trading and energy services offer growth potential and will be further developed in line with financial resources.