E.ON’s Uniper signals confidence with financing ahead of split

E.ON’s Uniper unit has secured a $5.6bn (EUR5bn) financing line from three big banks and the German utility believe is a vote of confidence in its plan to spin off the company.

“We are pleased that we managed to get this financing sorted out so early,” a spokesman said. “The capital market understands our business model and begins to trust us.”
E.ON building
Company shareholders will vote next Wednesday on the spin-off of the legacy power-plant and energy-trading operations as Uniper, while Germany‘s biggest utility will keep renewables and other newer business areas as its future core business.

Reuters reports that the move is likely to be approved but there is a lot of work yet to do in delivering a convincing long-term strategy to investors.

The company has been denied the chance to move its nuclear reactor business, and costly waste decommissioning, to Uniper, but the German government has intervened to make the company retain it.

The split is to help E.ON focus on new business areas like renewables, end customer solutions, and regulated networks.

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