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German energy giant EON on Wednesday said it was in `advanced negotiations` to sell its remaining stake in fossil-fuels spinoff Uniper to Finland`s Fortum Oyi.
Fortum would make a cash offer to all Uniper shareholders of 22 euros ($26.40) per share. a price that would value EON`s 46.65-percent stake at some 3.8 billion euros.
The two sides were in `advanced negotiations` about the proposed deal. which may be completed in `early 2018`. EON said in a statement.
`Certain questions` also remain to be clarified with authorities. the Essen-based group added.
Chief executive Johannes Teyssen said in August that he was examining `all possible options` to dispose of EON`s remaining stake in Uniper.
EON. one of Germany`s four largest energy companies. spun off its coal and gas power plants into Uniper in 2016 before floating it on the Frankfurt stock market.
The parent company has retained control of its gas and electricity grid businesses. renewable plants and customer service.
EON booked charges of 11 billion euros in its accounts for last year as it wrote down the value of the fossil fuel assets.
The group`s move came as German energy utilities face tough choices during the government-spurred `energy transition` from fossil and nuclear generation to renewables.
Shares in EON gained 2.9 percent by 1045 GMT Wednesday to trade at 9.48 euros. outperforming the DAX index of blue-chip German stocks. which was down 0.1 percent.
Meanwhile. Uniper shares gained 5.4 percent to trade at 22.19 euros — above the proposed offer price from Fortum.
