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EnBW Takes 35 per cent stake In German municipal utility

28 November 2003 – Energie Baden-Wuerttemberg said Thursday that its EnBW Regional AG unit has acquired a 35 per cent stake in the Stadtwerke Ludwigsburg municipal utility in a deal that hooks the town of Ludwigsburg to EnBW’s electricity network.

The economic value of the transaction should have given EnBW a 45 per cent stake but instead it took a smaller stake plus € 18m in cash, the company said in a statement.

The partnership puts Ludwigsburg in a better position to compete in a liberalized energy market, and ties in with EnBW’s strategy to build up a network of “fair partnerships with communes and municipal utilities,” EnBW said.