Germany’s E.ON Plans to Sell Gazprom Stake for USD 4,5 B

The stake of Germany's E.ON in Gazprom is estimated at Eur 4,5 B. File photo

German company E.ON Ruhrgas, which is the main foreign shareholder in Gazprom and the largest buyer of Russian natural gas in the EU, is planning to sell its stake in the Russian energy giant.

The Russian newspaper Kommersant reported Wednesday that the German company was planning to sell its 3,5% stake, estimated at USD 4,5 B, to Russia’s Vnesheconombank, the state-owned economic development bank, which currently owns 2%.

Both sides have agreed on the sale and are waiting on approval from the German and Russian governments. A discussion on the deal is expected to take place Friday during the meeting between Russian PM Vladimir Putin and German Chancellor Angela Merkel.

The newspaper also reports that the stake could not be sold on the open market for fears of damaging Gazprom’s market capitalization.

The CEO of E.ON Ruhrgas, Klaus Schafer, has stated that the company does not consider its stake in Gazprom a strategic asset.

The deal is expected to improve the financial position of E.ON after the CEO Johannes Teyssen said earlier in November that the company planned to raise EUR 15 B in 2011-2013 from asset sales.

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