E.ON says it does not plan to spin off renewable-energy business

BERLIN Sun Mar 10, 2013 10:22am EDT

Mock-ups of atomic waste barrels are arranged by protestors at the entrance of the annual meeting of German utility giant E.ON in Essen May 3, 2012. REUTERS/Ina Fassbender

Mock-ups of atomic waste barrels are arranged by protestors at the entrance of the annual meeting of German utility giant E.ON in Essen May 3, 2012.

Credit: Reuters/Ina Fassbender

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BERLIN (Reuters) - Germany's biggest utility, E.ON, denied that it is planning to spin off its renewable-energy business as part of its debt-reducing disposal program.

"There are no plans to spin off the division," an E.ON spokesman told Reuters on Sunday.

Without citing its source, German magazine Der Spiegel had reported that E.ON plans to create a separate entity for its renewable-energy division, which includes wind parks, biogas plants and solar farms, for a later stock market listing.

The Duesseldorf-based company has sold assets worth about 17 billion euros ($22 billion) to shrink its 36 billion euro debt pile as it contends with a weakening European power market.

E.ON said in January that it was extending its asset disposal target by about 3 billion euros to a total of 20 billion euros, announcing goals to sell its stake in uranium enrichment company Urenco and some holdings in local utilities.

(Reporting by Matthias Inverardi, writing by Andreas Cremer; Editing by David Goodman)

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