Eon sells US wind farm majority stakes

Germany's largest power supplier has said it will sell majority stakes in two US wind farms in Texas and Indiana. The move is meant to help whittle down Eon's current debt levels of tens of billions of euros.

German utility Eon announced Friday it had agreed to sell two US wind farms to Canadian group Enbridge.

"Eon will sell an 80 percent interest in a portfolio of two wind farms in the US," the company confirmed in a statement, referring to the 203-megawatt Magic Valley 1 near Harligen, Texas, and the 202-megawatt Wildcat 1 near Elwood, Indiana.

Both wind farms have a combined enterprise value of $650 million (522 million euros), but details of the planned transaction were not immediately disclosed.

Strategic move

Eon said it would retain a 20 percent stake in both farms and remain their operator, "demonstrating the firm's ongoing commitment to the projects and the North American market," where the Germans currently operate over 2,700 megawatt of renewable capacity.
Analysts said the planned sale was part of Eon's strategic realignment to reduce debts to the tune of 31 billion euros and focus more on marketing its expertise in the energy sector.

Enbridge for its part has so far specialized in energy transportation technology, also operating huge oil pipelines in North America. But the Canadians have also invested some $3 billion in green electricity systems over the past five years.


NOV 28 2014
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