Valuation of E.on’s Spanish ops may hit EUR 2bn - report

Aug 6, 2014 - Indicative offers for the acquisition of E.on SE’s (ETR:EOAN) Spanish operations that include 1.1 GW of renewable energy assets would value the business at about EUR 2 billion (USD 2.67bn), unnamed sources told Reuters on Tuesday.

The first non-binding proposals are expected to submitted by August 11.

People familiar with the matter told the news agency that among the potential purchasers is private equity firm CVC Capital Partners and a group comprising Canada's Borealis Infrastructure and Portuguese utility Portuguese utility Energias de Portugal SA (ELI:EDP). A consortium consisting of private equity firm Riverstone and Swiss energy firm Alpiq (SWX:ALPH) are also among the parties interested in buying all or some of E.on’s assets in Spain. In addition, KKR & Co LP (NYSE:KKR) from the US, Australia’s Macquarie Group (ASX:MQG) and Spain's Grupo Villar Mir are expected to submit bids for the operations, according to the sources.

Other sources have informed Reuters that E.on is currently trying to dispose of its businesses in Italy and Spain in an effort to cut its EUR-31.1-billion debt. The German utility has a workforce of about 1,200 people in Spain. In addition to the renewable parks, it has 3.2 GW of thermal power plants there.

(EUR 1.0 = USD 1.337)

Choose your newsletter by Renewables Now. Join for free!