Watson Farley & Williams (“WFW“) advised Wirtschaftsbetriebe Neustadt am Rübenberge GmbH and Stadtnetze Neustadt am Rübenberge GmbH & Co. KG – both of which are part of the Ideenstadtwerke Group – on the spin-off and partial sale of their passive fibre optic networks to the ERGO Insurance Group and its asset manager MEAG.
As part of the transaction, Stadtnetze Neustadt am Rübenberge’s existing passive fibre optic network infrastructure was transferred to two newly established subsidiaries which were then acquired by the ERGO Group. Stadtnetze Neustadt am Rübenberge remains a shareholder and Stadtwerke Neustadt will continue active network operations under the RASANNNT brand.
The transaction represents a significant investment in the high double-digit million range in the Hanover region’s digital infrastructure, allowing it to service around 40,000 customers as part of a planned network expansion. It is also the first investment by MEAG’s newly established platform Optical Fiber Networks, which focusses on the acquisition and expansion of fibre optic networks in Germany.
Ideenstadtwerke Group, based in Neustadt am Rübenberge near Hanover, comprises several municipal companies under its holding company Wirtschaftsbetriebe Neustadt am Rübenberge GmbH. It provides central public services, including water, gas and energy supply, telecommunication, waste management and other municipal services. Stadtnetze Neustadt am Rübenberge GmbH & Co. KG is the asset holding company for the local energy, water, gas and telecommunications infrastructure.
WFW Germany Infrastructure team that advised Ideenstadtwerke Group was led by Hamburg Corporate Partner Christian R. Schindler, supported by Senior Associates Moritz Ferdinand von Baumbach and Marian Henkes, Managing Associate Sebastian Olbertz und Associates Albert Merck and Julian Kasper. Hamburg Partner Verena Scheibe and Managing Associate Manuel Rustler advised on tax law matters.
Christian commented: “We are delighted to have supported the Ideenstadtwerke on this strategically important transaction. The structuring required close integration of both corporate and tax law matters – particularly regarding the spin-offs, share sales and shareholders’ agreement. We are especially pleased to have made an important contribution to the digital infrastructure in the region with our client and MEAG/ERGO”.
Dieter Lindauer, Managing Director of Ideenstadtwerke, added: “The strategic partnership with MEAG/ERGO secures our further expansion in the fibre optic business. The cooperation with Watson Farley & Williams and their team led by Corporate Partner Christian R. Schindler contributed significantly to the success of the transaction”.
