Exclusive E.ON’s Power Unit Uniper to List on September 12, Price Set by Opening Auction

E.ON will list its fossil-fuel electricity producer Uniper on September 12 on the Frankfurt stock exchange, finalizing the breakup of Germany’s largest utility, which hopes the two separate companies will manage better the country’s transition to renewable energy. A market auction will set the price of Uniper’s stock, Uniper said in a statement Friday. Every owner of 10 E.ON shares will receive one Uniper share. The listing of a 53.35-percent stake in Uniper will set a new milestone in Germany’s energy market, which has been in turmoil since Chancellor Angela Merkel accelerated an expansion of renewable power sources and the shutdown of nuclear power plants by 2022, in the wake of Japan’s nuclear disaster in 2011. Uniper’s listing will put a new value on both the slimmed-down E.ON as well as the new company, giving an indication how much both operations are worth and whether E.ON might face new writedowns on its business, including the 46.65 percent stake of Uniper it will initially hold after the listing. The valuations of German utilities, including RWE and EnBW, have dramatically dropped since 2011 as a glut of wind, solar and other renewable energy caused wholesale electricity prices to drop, diminishing the companies’ profitability. After the split, E.ON will focus on renewable energy, sales and power grids, while Uniper will be responsible for gas and coal power plants, as well as energy trading. RWE , Germany’s second-largest utility, also plans to split in two, spinning off its renewable energy operations into a company called Innogy.   Picture: Uniper CEO Klaus Schaefer. Source: Denis Ignatov Photography for Handelsblatt