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Germany's E.ON hires Citi to advise on asset sale

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(Credit: VCPost) The image shows the logo of Germany's biggest utility firm E.ON SE.E.ON SE
April 4
9:15 AM 2014

E.ON SE appointed Citi as the company’s adviser for its planned sale of its units in Spain. This was according to three sources that were familiar with the matter. According to a Reuters report, the biggest utility firm in German has been planning to end its weaker assets in southern Europe’s energy sectors.

The planned exit from Spain was first reported in December. The new development of E.ON’s intended exit is the next step after the energy company decided to sell weaker ventures including coal and gas. These assets have come under pressure following moderate demand of renewable power in Europe.

Sources also added that E.ON has been planning to put its Italian units on sale. This move would end its expensive ventures in southern Europe following billions of losses on these assets.

One source said, "The price will also greatly depend on the new delivery contracts for E.ON's power plants. The sticker price for the assets can be engineered depending on how you shape the delivery contracts."

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