Vattenfall’s German subsidiary HEW today signed a shareholders’ agreement with US owned Mirant on joint ownership of the Berlin energy company Bewag. The agreement is one step in the creation of the new entity “Neue Kraft”” in the German electricity market.

HEW and Mirant intend to keep equal shares in Bewag and to exercise all rights resulting from their shares in a coordinated manner. Following the conclusion of the agreement, each party will hold 44.76 per cent of Bewag’s capital stock (46.05 per cent of voting rights). HEW and Mirant undertook to always hold equal shares in Bewag’s capital stock and voting rights, and to always exercise their voting rights as shareholders together and in conformity with the Agreement.

This agreement is fully in line with the Joint Declaration regarding the establishment of a fourth force in the German energy sector, signed by Vattenfall, Mirant, HEW and the Berlin city government on 27 April 2001.