Date: 30.11.2014 21:31 clock
The Heavily Indebted energy company E.ON separates from the area, which was the nucleus of the company once: the existing core business with conventional electricity from coal, oil, gas and nuclear power will be sold. These business units are split off and transferred to a new independent company. Then they should be transferred to the shareholders through an IPO, it said in a press release. The remaining minority shares are to be sold on the stock exchange in the medium term.
The new strategy should be but “no program to cut jobs,” said CEO John Teyssen. The details are explained in the morning.
New Company shall remain in NRW
All capital market liabilities of the former group remain at E.ON , This, and a “solid financial resources” of the new society, this would be very financially robust, it said. Also, a majority of the employees will continue to work for the new company, which will have their seat in NRW. The basis for the listing of the new company to be created in the coming year. Following approval by the Annual General Meeting the removal is to be performed in the 2016 financial year.
One reason for the focus appears to be the fall in prices of wholesale prices for conventional electricity. These have fallen because of excess capacity in power plants and the expansion of green electricity alone since the beginning of 2013 by more than a quarter. “The current wide business model of E.ON is the new no longer sufficient,” said chief executive John Teyssen.
Focus on Renewable Energy
Instead, the company will focus on renewable energy, energy networks and customer solutions, it said in the statement. This was decided by the Supervisory Board. “The dramatic changes in the global energy markets, technological innovation and growing individual customer expectations require a bold new beginning,” said Supervisory Board Chairman Wenning.
E.ON is next to RWE, EnBW and Vattenfall one of the largest energy companies in the country. The company currently produces more than 15 locations electricity from conventional energy sources. The DAX-listed company has approximately 60,000 employees and posted sales of 122 billion euros. Recently had to write off € 4.5 billion E.ON partly due to bad business in Southern Europe. It is expected that E.ON completes pay the financial year with red.
In the wake of the nuclear phase-out by the Federal Government decided in 2011, E.ON asks for damages in the amount of 380 million Euro.