Background
- Founded in 2010, Westenergie Breitband GmbH (WEB) is one of the largest fibre network operators in Germany and is a wholly-owned subsidiary of E.ON, Germany’s largest energy company
- WEB operates a 11.5k km fibre network in Western Germany, serving over a million inhabitants in more than 300 municipalities
- Igneo Infrastructure Partners (Igneo) is an autonomous investment team of the First Sentier Investors Group, investing in mid-market infrastructure companies in Europe, North America, Australia, and New Zealand
Process
- DC Advisory (DC) was engaged by Igneo to provide M&A and debt advice on its acquisition of a 50% stake in WEB
- DC leveraged its extensive experience and deep sector knowledge to assist Igneo throughout the process, and contributed to several detailed work streams including:
- Process strategy and bid tactics
- Business plan development and analysis
- Financial modelling and valuation
- Coordination of due diligence advisors
- Support in drafting Investment Committee materials and advice on transaction documentation
- Debt advice on optimising the capital structure and engaging with potential lenders
Outcome
- On 18 July 2022, E.ON and Igneo signed an agreement under which Igneo will acquire a 50% participation in WEB
- The new joint venture plans to provide high speed broadband connections to more than 1.5 million households and wholesale customers in Germany
- The transaction further demonstrates DC’s expertise in the digital infrastructure sector, and strengthens the firm’s outstanding M&A and debt track record advising on landmark fibre transactions in Europe
