EON has issued the IM for its district heating businesses in Sweden.

The company announced in March (2022) that it was initiating a strategic review of the assets and has now brought its businesses in Norrköping and Örebro to market – with NBOs due next month (October).

According to a source, the district heating assets are attracting attention from:

• Allianz
• EQT
• KKR
• Macquarie

The sale process was due to start in the autumn with Citi and Danske Bank sell-side advisers, as exclusively reported last month (August).

EON’s 2 businesses are understood to have a combined enterprise value of €1.5-2 billion ($1.49-1.98bn). The business in Norrköping receives its heat and power from the Händelöverket cogeneration plant – also owned by EON.

Örebro’s separate cogeneration station comprises 3 boilers with a combined capacity of up to 570MW, providing heat and hot water to around 140,000 of the county’s residents. The largest boiler – P5 – is powered by biofuels such as sawdust and turf.

EON was approached for comment but had not replied by the time of publication.