18 January 2005 – LAWFUEL – The Law News Network – Gleiss Lutz and Herbert Smith have advised TXU in relation to its sale of a 74.9% stake in Braunschweiger Versorgungs Aktiengesellschaft (“BVAG”) to
Veolia for EUR370 million.
The stake in BVAG, a German energy company based in the City of
Braunschweig, was sold by way of an auction. The City of Braunschweig holds
the remaining 25.1% interest.
The team advising TXU was led by Gleiss Lutz corporate partner Dr Ralf
Thaeter and Herbert Smith corporate partner Chris Haynes.
Ralf Thaeter commented:
“This transaction is only the second re-sale of an interest in a privatised
German utility, the other being the sale by TXU of a 51% interest in
Stadtwerke Kiel AG. Gleiss Lutz and Herbert Smith have been delighted to
act on both transactions.”
Chris Haynes commented:
“BVAG was TXU’s most valuable continental European asset. Its sale marks
the end of a two-year Europe-wide divestment programme conducted by the TXU
administrators on which we have advised.”
The Ernst & Young administration team included Roy Bailey, Richard Beard and
Richard Hazel. ABN Amro was financial adviser to TXU.
Veolia was advised by Freshfields Bruckhaus Deringer. The City of
Braunschweig was advised by KPMG Corporate Finance (financial advisers) and
Beiten Burkhardt Rechtsanwaltsgesellschaft mbH (legal advisers).
Herbert Smith, Gleiss Lutz and Stibbe are also advising TXU in relation to
the liquidation of the BVAG holding structure and repatriation of the sale
proceeds for the benefit of TXU creditors.