E.ON divests its Spanish businesses to Macquarie fund

11/30/14

  • Enterprise value of €2.5 billion agreed
  • New owner committed to long-term future of the businesses

E.ON has agreed to sell all of its Spanish and Portuguese businesses to Macquarie European Infrastructure Fund IV for an enterprise value of €2.5 billion. E.ON has found a professional new owner for its activities with an impressive track record in the energy business. The buyer will take over all of E.ON’s activities in Spain and Portugal and is committed to the long-term future of the businesses.

The activities that will be sold include all Spanish and Portuguese businesses of E.ON including 650,000 electricity and gas customers and 32,000 kilometers of electricity distribution network. In addition, the activities include a total generation capacity of four gigawatt that come from coal, gas, and renewable sources in Spain and Portugal. The total number of employees is approximately 1,200.

The transaction is subject to the approval of the European Union competition authority. The transaction is expected to close in the first quarter of 2015. In addition, Wren House Infrastructure will then become a minority investor in E.ON’s Iberian businesses alongside the Macquarie Fund.

E.ON CEO Johannes Teyssen said: “Our activities in Spain are high performing assets with a climate-friendly and diversified generation fleet and high quality electricity distribution network. The proceeds of the sale will increase E.ON’s financial flexibility and strengthen our balance sheet. I want to take this opportunity to thank all our employees in Spain for the excellent work they have done as part of E.ON and as we look to finalize the transaction, we will work closely with the new owner, our trade unions and representatives to set a successful course for the future of the company and its employees.”

About MEIF4

Macquarie European Infrastructure Fund (MEIF4) is a specialist infrastructure fund focussed on long-term investment in high quality European infrastructure businesses. It invests on behalf of pension funds and institutional investors who are attracted to the positive long-term investment attributes of well-managed infrastructure.

About Wren House Infrastructure

Wren House Infrastructure was set up in 2013 as the global direct infrastructure investment vehicle of the Kuwait Investment Authority.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.