E.ON Expected to Write Down Billions after Uniper Float
Next month’s IPO of fossil-fuel power company Uniper, spun off from struggling energy giant E.ON at the start of the year, is expected to expose a major over-valuation of its assets, Handelsblatt has learned. That would force E.ON to write down billion of euros and post yet another net loss.
E.ON, Germany’s largest energy group, has split itself in two in response to a slump in power prices caused by the country’s green energy revolution. But its reorganization is being marred by big writedowns.
E.ON, the German utility giant, will write down billions when it spins off Uniper, contains the group’s fossil-fuel power plants and energy trading activities, Handelsblatt has learnt.
The reason is that at the time of E.ON’s formal separation into two units at the start of the year, Uniper was overvalued in the company accounts, and the discrepancy is likely to become evident once the shares start trading, meaning that the value will have to be corrected by the end of the year.
Want to keep reading?
Subscribe now or log in to read our coverage of Europe’s leading economy.