Southern Company, through its Southern Energy Inc. subsidiary, has agreed to buy 25 percent of Berlins electric utility,
Berliner Kraft und Licht AG, for approximately $830 million cash.
Southern Company has formed a consortium with two leading German utilities, PreussenElektra and Bayernwerk. The
consortium will control 75 percent of the Berlin utility, known commonly as Bewag. The deal is subject to approval by
Berlins parliament and European regulators.
This acquisition from the start will enhance earnings for Southern Company shareholders, said A.W. Dahlberg, Southern
Companys chairman, president and chief executive officer. Bewag is a vertically integrated electric utility with a premier
distribution system and access to high-voltage transmission lines connecting to other parts of Europe. It offers us an
opportunity to capture growth in the worlds second-largest integrated utility market. We see the same prospects for
profitable ventures in continental Europe that we find now in the United States: energy marketing and trading, low-cost
generation, efficient distribution and enhanced energy services to customers.
The Bewag stake became available after the city of Berlin decided to sell its 50.8 percent share of the company. That 50.8
percent, combined with shares of Bewag controlled by PreussenElektra and Bayernwerk, makes it possible for the three
partners to each hold 25 percent of Bewag.
PreussenElektra is owned by Veba, and Bayernwerk is owned by Viag. Both parent companies have numerous non-electric
holdings, such as chemicals, real estate and telecommunications.
This is by far the most significant investment undertaken by an American company in continental Europes electric utility
industry, Dahlberg said. Its an added benefit that our new partners are two of the most forward-looking utilities in
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is the parent firm of Alabama
Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Based in Atlanta, Southern Company
supplies electricity in eight countries on four continents and provides energy-related marketing, trading and technical services
and wireless telecommunications. Southern Companys common stock is one of the 20 most widely held corporate stocks in
Southern Energy Inc., a unit of Southern Company, develops, builds, owns and operates power production and delivery
facilities and provides a broad range of services to utilities and industrial companies around the world.