The business could fetch as much as €5bn, said Reuters, citing four banking sources familiar with the matter. DEA operates in 14 countries and accounted for 11 per cent of RWE’s operating profits in 2012.
“It’s a pretty large asset and it makes sense for a private equity to team up with a strategic (partner). They are currently in active discussions with banks to appoint an adviser,” a Middle East-based banking source told Reuters.
It was previously reported that RWE asked bidders to submit offers for the unit by late December and Blackstone, KKR, Centrica and Wintershall were expected to participate.
In the meantime, KKR is reportedly preparing to float its portfolio company BIS Industries to raise up to $474m.
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