E.On to sell German high-voltage transmission grid - News Wires

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E.On to sell German high-voltage transmission grid

By: The Associated Press | 10 Nov 2009 | 07:53 AM ET

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FRANKFURT - Utility E.On AG said Tuesday it will sell its German extra high-voltage electricity transmission network to TenneT, a state-owned Dutch network operator, creating Europe's first cross-border power transmission network.

The sale of Transpower Stromuebertragungs GmbH should be finalized in early 2010 and is expected to be valued around euro1 billion ($1.5 billion), depending on the financial situation of the unit closer to the end of this year.

E.On, based in Duesseldorf, said its German regional distribution grids are not affected by the sale and will remain part of the infrastructure business managed by E.ON Energie in Munich.

"As a pure network operator and strategic investor with long-term interests, TenneT can offer the Transpower employees good prospects," E.On Chief Executive Wulf Bernotat said a statement.

"At the same time, we are convinced that TenneT will ensure the necessary investments needed in network expansion including the ambitious task of connecting offshore wind farms.

"Furthermore, the merger of the TenneT and Transpower networks gives rise to Europe's first cross-border power transmission network. This is another important step toward integration of the European electricity market," Bernotat said.

Shares of E.On were down slightly at euro26.98 in Frankfurt afternoon trading.

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