Financial Advisor to CKW

On 6 June 2023, CKW and the Uri public authorities announced a significant transaction. In future, the canton of Uri and Korporation Uri will hold a 51% majority shareholding in the EWA-energie Uri AG power plant, thereby fulfilling their mandate – in connection with upcoming concession renewals – to further strengthen the cantonal energy strategy.

At the core of the transaction, CKW is selling 52.3 percent of the shares in EWA-energie Uri AG at a price of CHF 180 million to a bidding consortium consisting of the canton, Korporation Uri and two energy infrastructure funds managed by Swiss Life Asset Managers. As a result, CKW is reducing its stake to 10 percent and remains a strategic anchor shareholder. This partnership allows the Axpo subsidiary CKW to expand renewable energies in the canton of Uri in view of the energy transition and to increase the security of supply. As a company in the field of power generation with renewable energies, which has high potential for the energy supply in Uri as well as climate policy challenges, EWA-energie Uri AG has a substantial economic, regional political and financial importance.

Support by IFBC

‍IFBC supported CKW as Financial Advisor during the entire sales process. On the one hand, IFBC assisted in the valuation of EWA-energie Uri AG as well as in determining the purchase price for CKW’s EWA shares. On the other hand, IFBC supported CKW as M&A advisor during contract negotiations. This process resulted in a balanced solution that reconciles the interests of all stakeholders.

Short portraits of the parties

CKW

‍The CKW Group is a leading Swiss provider of integrated energy and building technology solutions. For over 125 years, the company has been supplying electricity to its now over 200,000 end customers in the cantons of Lucerne, Schwyz and Uri. In addition, it offers innovative products and services throughout Switzerland in the fields of electricity, photovoltaics, heating technology, e-mobility, building automation, ICT solutions and security. The CKW Group employs over 2,200 people throughout Switzerland, including over 400 apprentices in 16 professions. It is the largest private-sector apprenticeship company in Central Switzerland.

Canton Uri

‍The canton of Uri is a founding canton of the Swiss Confederation. It currently has about 37,000 inhabitants. It consists of 19 municipalities. The executive authority of the canton of Uri is the seven-member government council. The legislative body is the cantonal council with 64 members. The canton of Uri grants numerous concessions, especially in the field of hydropower. The canton of Uri has an annual turnover of about 420 million Swiss francs.

Korporation Uri

‍The Korporation Uri is by far the largest landowner in the canton of Uri. In this capacity, it grants concessions, promotes alpine farming and the careful use of the corporation-owned forest, preserves the mountain environment and maintains the cultivated agricultural land. The Korporation Uri also finances and promotes public works. As a sponsor of cultural, social and sporting projects as well as of research work, it contributes to the economic development of Uri. The corporation supports the communities and the canton with various services that go far beyond the corporation’s original tasks.

Swiss Life Asset Managers

‍Swiss Life Asset Managers has 165 years of experience in managing the assets of the Swiss Life Group. This insurance heritage has had a decisive influence on the investment philosophy. The focus is on top principles such as value preservation, the generation of long-term and consistent returns and a responsible approach to risk. Swiss Life Asset Managers also makes this proven approach available to third-party clients in Switzerland, France, Germany, Luxembourg, the UK and the Nordic countries. As of 31 December 2022, Swiss Life Asset Managers managed CHF 250.1 billion in assets for the Swiss Life Group, of which more than CHF 105.4 billion was for third-party investment business. Swiss Life Asset Managers employs over 2,100 people in Europe. Established in 2011, Swiss Life Asset Managers’ Infrastructure Equity business manages over EUR 10.2 billion of infrastructure assets for its clients and partners. The team consists of over 60 investment specialists with an average of 20 years of senior-level industry experience. It has made over 70 infrastructure investments across twelve funds in the energy, communications, transportation, regulated utilities, social infrastructure and renewable energy sectors. These include, for example, investments in hydropower plants, power grids, heating networks, solar plants, wind farms, energy utilities, ports, airports, data centers, fiber optic networks, mobile communications facilities, hospitals, industrial parks, and waste disposal and recycling facilities. In Switzerland, the capital invested in infrastructure amounts to CHF 1.1 billion, including investments in the canton of Uri.

‍