This comes after EWE has acquired additional 15.79% stake in VNG for €320m in 2014, bringing its ownership to 63.695.
The official sale process has not commenced, Reuters Africa reported citing sources.
The company has not yet confirmed its plans regarding the stake sale.
The city of Leipzig, where VNG is based, via municipal utility LVV has emerged as the front-runner for VNG assets.
As reported by the news agency, LVV is likely to partner with Australian infrastructure investor Macquarie to finance the deal.
EWE spokesman said the company had agreed to enter into talks with LVV. However, the company is also contemplating plans to retain the stake as well as a possible sale.
Owned by municipal utilities and local groups and Russia’s Gazprom, VNG generated €224m in net profit during 2014, up from €174m.
