Germany energy company E.ON is in talks to sell its electricity distribution network in the UK to a group of foreign investors for up to £3.5bn, the Sunday Times reported.

E.ON’s electricity distribution business in the UK supplies power to more than five million homes across Central England and is made up of the former Midlands and East Midlands electricity companies.

According to the report, a consortium which comprises Abu Dhabi Investment Authority, Canada Pension Plan and Australian Bank Macquarie approached for the distribution business.

Reuters reported that the consortium interested in E.ON’s business in the UK lost the race to buy French utility EDF’s UK electricity distribution asset for £5.8bn in July.