Asterion Pulls Ahead of Kretinsky in Race to Buy Utility, Sources Say

Article content

(Bloomberg) — Asterion Industrial Partners has made the highest bid to acquire German utility Steag, people with knowledge of the matter said, potentially giving the firm the upper hand in a battle with rival suitor Daniel Kretinsky.

The Spanish infrastructure investor has emerged as the preferred bidder ahead of a vote by Steag’s owners at a meeting Friday, the people said, asking not to be identified discussing confidential information. 

Article content

Asterion has been competing against Czech billionaire Kretinsky’s energy holding company EPH to acquire Steag from its owners, a group of six western German municipalities. EPH teamed up with the RAG-Stiftung foundation, which helped oversee Germany’s transition away from hard coal mining, for its bid.

Although Asterion’s bid is the highest, a sale to the Spanish fund isn’t a foregone conclusion, some of the people cautioned. Powerful labor unions, which have close ties to the RAG-Stiftung foundation, may throw their weight behind EPH’s bid, the people added.

Steag’s supervisory board, whose members include representatives of both shareholders and labor, are also set to vote on the deal on Friday. Even though the vote isn’t binding, it could influence the outcome. 

Representatives for Asterion, Steag and Kretinsky declined to comment.

Steag operates six coal-fired power plants in the west of Germany. Both Asterion and EPH put forward plans to transform Steag into a major renewables player — something that will require massive investment. 

Asterion plans to invest at least €1 billion ($1.1 billion) in Steag’s green shift and assume about €1 billion of its unfunded pension liabilities, Bloomberg News has reported. Asterion was founded by members of KKR & Co.’s infrastructure investment team, including Jesús Olmos Clavijo.