EON Plans to List Its Uniper Unit on Sept. 12 in Frankfurt

  • First share price for Uniper to be decided by opening auction
  • EON, Uniper won’t provide any guidance on opening price

EON SE, Germany’s biggest utility, will list its conventional generation and trading unit on Sept. 12 on the Frankfurt Stock Exchange.

Dusseldorf, Germany-based Uniper published Friday the final steps in a process first announced in November 2014 in a stock-exchange prospectus on its website. The first price of the share will be determined in an opening auction in the morning of the first day of trading, the company said.

“Neither Uniper nor E.ON are going to provide any guidance on the first price,” the company said in a statement accompanying the prospectus. “It is expected that the first price will be established shortly after commencement of trading.”

The decision to separate the unit, which has been operating independently since January, is one of the most radical responses yet to Germany’s unprecedented shift toward wind and solar generation, a policy that’s undermining power prices and hurting profitability at traditional utilities. An overhauled version of EON will focus on renewables, networks and retail consumers, while also keeping its German nuclear plants.

Shareholders will have “the same property as before, while they get more freedom to make decisions for their portfolio with two tradeable shares instead of one,” EON Chief Executive Officer Johannes Teyssen said in a separate statement.

Uniper will trade as a member of Germany’s benchmark DAX index on the first day of trading only and will seek to join the MDAX index later, an EON official said earlier this week.

EON, formed in 2000 from the merger of utilities Veba AG and Viag AG, plans to distribute 53 percent of Uniper’s shares to existing shareholders, giving one Uniper share for every 10 of EON, before eventually selling the remaining stake in 2018 at the earliest. 99.7 percent of EON’s shareholders approved the spin off at an annual shareholder’s meeting in June.

RWE AG, EON’s main competitor in Germany, followed late last year with its own plan to separate its renewables, retail and grid business. It will only sell about 10 percent of the new company in an initial public offering later this year. While more stakes may be sold, RWE intends to keep a majority.

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