Germany’s top utility is examining the possibility of offloading its Spanish assets, with interest already being shown by a number of companies from Europe and further afield.
E.ON (FWB: EOAN) is attempting to reduce a $41bn debt and it is estimated that its portfolio in Spain could garner around $2.7bn, according to Reuters.
Parties expected to submit non-binding bids for all or some of the assets including private equity firm CVC; a consortium consisting of Canada’s Borealis Infrastructure and Portuguese utility EDP; and a group comprising private equity firm Riverstone and Swiss energy company Alpiq, insiders told the news agency.
KKR, Macquarie and Spain’s Grupo Villar Mir are also expected to express an interest and first bids are expected to be submitted by an 11 August deadline, the sources said.
E.ON owns 3.2 GW worth of thermal plants as well as 1.1 GW of renewable capacity in Spain. It also operates a 32,000 km power distribution network with a so-called regulated asset base (RAB) of about $1.1bn.
The power grid is expected to be one of the most attractive assets in E.ON’s portfolio, as investors are looking for stable and guaranteed returns amid low interest rates, something which regulated energy assets provide.
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