Austrian economic news in a flash

(The most important economic news in Austria from 5 October)

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Austrian utility EVN and German shareholder EnBW will together offer shares in EVN on the market. The move, whose value is projected at EUR 700m, will first lead to a capital increase in EVN and second to the divestment of EnBW's shareholding in the Austrian company. The price range of the offer is seen at EUR 10.50 to EUR 13.50. EVN will offer up to 16.35m shares in a capital increase, while EnBW will put for sale 40.88m shares. EVN expects proceeds of around EUR 200m from the transaction, which will be used mainly for backing up of its equity and for expansion in the field of renewables.

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Wolfgang Anzengruber, CEO of leading utility Verbund, said he does not exclude a capital increase at the company's 50%-Turkish joint venture Enerjisa in the medium term. Such a plan is however not currently under discussions, he added. A day earlier, Zafer Kurtul, the CEO of Verbund's JV partner, said that he envisages an IPO for Enerjisa.
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Builder Porr plans to issue a bond of up to EUR 150m, with a maturity in five years. The coupon is seen at 5%. The proceeds will be used mainly for strengthening the company's financial profile.

*Verbund plans to reveal details over its intended EUR 1bn capital hike in the second half of the year. The company will target international investors in the transaction. The utility's CEO projects that all major shareholders, including the Austrian state, will take part in the move.