E.ON Reported to Sell US Subsidiary

Germany’s biggest utility, E.ON AG, wants reduce debt by selling its US subsidiary, writes Handelsblatt referring to US sources. 

According Handelsblatt, Goldman Sachs is advising E.ON on the sale. US energy companies like Duke Energy, Southern, American Electric Power and PPL were named as potential buyers. E.ON US declined to comment, the paper said.

E.ON U.S., headquartered in Louisville, Kentucky, U.S.A., is a diversified energy services company. E.ON U.S. owns and operates Louisville Gas and Electric Company, a regulated utility that serves 318,000 natural gas and 390,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Kentucky, U.S.A., that serves 518,000 customers in 77 Kentucky counties and five counties in Virginia. E.ON acquired the business in 2002 when it bought the then parent company British Powergen. Powergen itself had purchased the US subsidiary in 2000 for EUR 3.2 billion.

As Handelsblatt reminded its readers, E.ON had announced last year to reduce its debt by EUR 10 billion until the end of 2010 by selling off shareholdings. It had already started in 2009 by selling power plant capacities, its stake in the utility holding Tüga and its extra-high voltage grid, the paper pointed out.

Source: Handelsblatt

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