The biggest utility company in Norway, Statkraft AS has sold off its 4.2% shareholdings in EON SE, the largest power producer in Germany. The price of the sale is 8.5 billion kroner or US$1.5 billion and the proceeds would be used to increase its investment capital base.

According to a statement by Statkraft from its Oslo, Norway headquarters said, "The main objectives for the strengthening of the capital structure are preserving a sensible balance between solidity and expansion ability, as well as maintaining the current credit rating."

The stake in the German utility was purchased by Statkraft back in 2008 through a Eur4.5 billion or US$5.9 billion swap deal. In that deal, Statkraft exchanged its 45% shareholdings in the Swedish venture EON Sverige for assets located in Germany, Sweden in the UK. Also included was EON stock worth Eur2.2 billion at the time.

Of the 83.4 million Statkraft shares in EON, about 23.4 million were sold for 2.3 billion kroner.