RWE and EON Agree to Sell Stakes in Luxembourg Utility Enovosby
Companies are biggest losers on German DAX Index this year
RWE and EON plan to split in separate strategy shifts in 2016
RWE AG and EON SE agreed to jointly sell their minority stakes in Luxembourg utility Enovos International SA, making headway in their goals to shed unwanted assets.
The German power companies signed an agreement on Dec. 22 to sell their stakes to a group led by the Grand Duchy of Luxembourg and Ardian SAS, the private investment company spun off from AXA Private Equity. The parties agreed not to disclose the purchase price, the companies said in an e-mailed statement on Wednesday. RWE holds 18.4 percent and EON has 10 percent of Enovos.
A sale may value Enovos at about 2 billion euros ($2.2 billion), Reuters reported in February. RWE and EON expect to close the transaction in the first quarter of next year, subject to approval by the City of Luxembourg, RWE’s supervisory board and the respective antitrust authorities. The utilities are selling assets as they adjust their businesses to German policy to increase the country’s share of renewable energy.
The companies, the two biggest losers on Germany’s benchmark DAX Index this year, will each split in 2016 in separate strategy shifts to expand beyond a power-generation model built on fossil fuels and nuclear energy. RWE climbed as much as 5.2 percent in Frankfurt before trading 5 percent higher at 11.865 euros as of 11:30 a.m., while EON was up 4.2 percent at 8.844 euros.