Verbund

Verbund AG, formerly known as Verbundgesellschaft or Österreichische Elektrizitätswirtschafts-AG, is Austria's largest electricity provider. Verbund covers around 40 percent of electricity demands in Austria and generates 90 percent thereof from hydro power. In addition, Verbund operates the supraregional power grid through its subsidiary APG. Verbund AG is listed on the Vienna Stock Exchange and in the ATX, the key index of Austrian stock-listed companies. The largest shareholder, at 51%, is the Republic of Austria. 1947 saw the establishment of Verbund as "Österreichische Elektrizitätswirtschafts-AG" through the second nationalization act. In the post-war years, the company's most urgent task was the planning, construction and operation of large power plants as well as the operation of the supraregional power grid. At the same time, special purpose vehicles (SPVs) were established to promote the construction of large hydropower and thermal power plants. The shares of the Republic of Austria in these special purpose vehicles were held by Verbund as a trustee. In 1955 it was once more possible to meet electricity requirements entirely using own domestic resources. However, as a result of the rapid economic growth, additional electricity had to be imported from 1965 on. Initially, Verbund - pursuant to prevailing legal principles - was one hundred percent nationalized. In mid-1987, the second nationalization act was amended to the extent that Verbund could be partially privatized, as long as 51 percent remained in government hands. At the same time, Verbund acquired the shares of the Republic of Austria in the special purpose vehicles (Österreichische Donaukraftwerke AG, Österreichische Draukraftwerke AG, Tauernkraftwerke AG, Verbundkraft Elektrizitätswerke GmbH, Ennskraftwerke AG, Donaukraftwerk Jochenstein AG and Österreichisch-Bayerische Kraftwerke AG). In 1988, Verbund was partially deregulated by going public, at which point 49% of the shares were sold.