RWE will transfer its renewables, grids and retail operations in Germany and abroad to a new subsidiary and list it on the stock market to will strengthen the viability of the group as a whole.
The new subsidiary will be listed on the stock market probably in late 2016. RWE intends to offer some 10 percent of the new company's share capital to the public in connection with a capital increase. At the same or later point in time additional stakes may be disposed.
The proceeds will be used to finance further growth in markets with good future prospects. There will be no change to the asset base available to back liabilities. In relation to the nuclear phase out, the RWE Group will increase its financial flexibility to fund its provisions. RWE AG will remain the new company's majority shareholder over the long term and consolidate it fully. The parent company will focus on conventional power generation and energy trading.
The transaction is still subject to RWE AG's Supervisory Board approval.
Peter Terium, CEO of RWE AG, said:
"The Group's restructuring is our response to the transformation of the European energy landscape," says . "We are creating two viable companies under one roof. The new subsidiary will have its own access to the capital market and improve our growth prospects. At the same time, we are convinced that conventional power generation will remain an irreplaceable partner for renewable energy for decades to come. Our conventional power stations are the backup for renewables."
Terium continues: "During the last three years, we have turned RWE into a financially more stable, more efficient and agile company, which has moved closer to its customers. Now we are taking the next logical step in our transformation process. By establishing the new company, we are creating one of Europe's leading innovative energy companies with substantial expertise in managing decentralised energy systems. Within the new structure, we will continue to bear our responsibility in the conventional energy landscape and satisfy the needs of tomorrow's energy world.”
The new subsidiary will be an integrated energy group with three main pillars. The renewables division will have a portfolio with an electricity generation capacity of more than 3.5 gigawatts and a strong focus on wind power. In grids, the company will be one of the most efficient operators in Central Europe, with a modern, 550,000 kilometre-long distribution network. In the retail business, the new subsidiary will serve over 23 million customers in twelve European markets and rank among the pace-setters of innovative customer solutions.
Based on the pro-forma figures for 2015, the new company would achieve external revenue of more than €40 billion and EBITDA of over €4 billion. The company would employ approximately 40,000 of the RWE Group's nearly 60,000 staff members.
In the future, the parent company, RWE AG, will focus on conventional power generation and trading.