EnBW Shareholders Back Capital Increase to Fund Nuclear Exit

EnBW Baden-Wuerttemberg AG (EBK), Germany’s third-biggest utility, got approval from its shareholders to seek fresh money to pay for the switch from nuclear generation to renewable energy.

Shareholders backed the plan for a capital increase of about 800 million euros ($1.1 billion) by setting an authorized capital of as much as 100 million euros at the annual general meeting in Karlsruhe today, EnBW said in an e-mailed statement.

The money has been pledged from the state of Baden- Wuerttemberg and the OEW association of municipalities, which each hold a 46.55 percent stake in the company. Shareholders also approved a dividend of 0.85 euros a share, EnBW said.

EnBW needs fresh cash to help fund the utility’s transition to renewables. Two of the company’s four reactors were closed last year after the nuclear meltdown in Japan prompted Chancellor Angela Merkel to announce plans to phase out atomic power by 2022.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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