Germany-owned power company E.On signed agreements to sell its 73.3-percent stake in E.On Mitte AG to a consortium of municipal shareholders.
E.On Mitte operates around 27,900 miles of power transmission lines in large sections of Hesse as well as in parts of eastern Westphalia, western Thuringia, and southern Lower Saxony. The Kassel-based company employs around 1,300 people.
Under the agreement, E.On will buy back energy retailer E.On Mitte Vertrieb GmbH as well as other equity interests held by E.On Mitte AG. Through this transaction, which is expected to conclude soon, E.On will receive net cash proceeds of $838 million.
The sale of its stake in E.On Mitte marks the conclusion of E.On’s reorganization of its German regional utility business.
E.On now has four remaining regional utilities in Germany: Avacon, Bayernwerk, E.DIS, and E.On Hanse. In mid-2012 E.On announced that it would focus on these four companies so that it could invest more effectively and efficiently as it helps to deliver the transformation of Germany’s energy system.
The sale of E.On Mitte does not affect power and gas customers in the network operator’s service territory. In most of this service territory E.On Mitte Vertrieb is the public utility provider and thus the energy supplier for most customers.