The largest utilities service provider in Germany E.ON has denied reports that it would spin off its renewable energy unit in order to reduce outstanding debt of in its balance sheet. An E.ON spokesman confirmed saying, "There are no plans to spin off the division."
The news of the spin off was reported in Der Spiegel, saying that plans are being undertaken to separate the renewable energy division of the company. This unit manages its wind parks, biogas plants, solar farms and would be primed for an IPO listing later in the year.
The company based out of Duesseldorf, Germany has been on a selling binge, with assets worth Eur17 billion sold off to be able to lower its Eur36 billion debt portfolio in the face of a weakening European power market. The plan continues as there is still between Eur3 billion and Eur20 billion still to be sold. The items on the list includes Urenco, a uranium enrichment firm and some of its shareholdings in local utilities.
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