E.ON to sell UK power distribution network-paper

E.ON to sell UK power distribution network-paper

The utility group delivers power to more than 5 million customers across Central England via its distribution business.

December 13, 2010 10:00 by Reuters

German utility E.ON has granted a consortium of foreign bidders exclusive rights to make an offer for Britain’s second-largest electricity distribution network, the Sunday Times reported.

E.ON has given a consortium comprising the Abu Dhabi Investment Authority, the emirate’s sovereign wealth fund, and Canada Pension Plan until mid-January to put together a firm bid, the paper said.

The utility group delivers power to more than 5 million customers across Central England via its distribution business.

It has hired JP Morgan to handle the sale while the consortium is being advised by Lexicon Partners and Goldman Sachs, the paper added.

An agreement could be reached before the new year, the paper said, citing sources close to the process.

E.ON, the world’s largest utility, said last month it plans to sell assets worth 15 billion euros ($19.9 billion) in divestments through 2013.

(Reporting by Julie Crust; editing by Louise Heave)