RheinEnergie AG acquires 16.1% stake

On 12 June 2007, the City of Mannheim, which previously held an indirect shareholding of 66.2% in MVV Energie AG, decided to sell a 16.1% stake to RheinEnergie AG, Cologne. The German Federal Cartel Office approved the acquisition of this shareholding on 2 August 2007. RheinEnergie AG acquired the shares on 11 October 2007. In RheinEnergie AG, we have found a strategic partner with whom we will be able to further develop the value-based, growthdriven company policy pursued by MVV Energie AG.

Capital increase successfully implemented

On 11 October 2007, the Executive Board of MVV Energie AG resolved with the approval of the Supervisory Board to act on the authorisation granted by the Articles of Association to increase the company's share capital.

In the course of the capital increase, the share capital of MVV Energie AG was increased by Euro 25.96 million to Euro 168.72 million (+18.2%) by issuing 10.1 million new shares from existing authorised capital in return for cash contributions with subscription rights for shareholders. The number of individual shares rose from 55.8 million to 65.9 million as a result of the capital increase. The new shares grant their holders the same rights as existing shares and participate in profits from 1 October 2006.

The new shares were offered to shareholders for subscription at a ratio of 11:2 and a subscription price of Euro 22.50. The discount on the reference price (Euro 29.85) thus amounted to Euro 7.35, or 24.6%. Shareholders were able to exercise their subscription rights from 16 October 2007 up to and including 30 October 2007. Subscription rights relating to the new share offering were traded on the market from 16 October up to and including 26 October. The initial listing of the new shares took place on the official market of the stock exchanges in Frankfurt am Main (Prime Standard) and Stuttgart on 31 October 2007.

MVV Energie AG intends to use the proceeds of around Euro 228 million from the capital increase to strengthen its equity base, to expand its municipal utility network and to make targeted investments in its high-growth fields of environmental energy and energy-related services in order to further maintain its profitable growth in these areas on a sustainable basis.