RWE’s Supervisory Board Greenlights Plans for Restructuring
At its meeting today, the Supervisory Board of RWE AG unanimously approved the Executive Board’s plans to restructure the Group.
The company will transfer its renewables, grid and retail operations in Germany and abroad to a new subsidiary, which it intends to list on the stock market towards the end of next year.
RWE AG will focus on conventional electricity generation and energy trading. In addition, RWE AG will remain the new subsidiary’s majority shareholder over the long term and consolidate it fully. There will be no change to the asset base available to back liabilities, the company said.
Manfred Schneider, Chairman of the Supervisory Board of RWE AG said “As a result of this restructuring, we will increase our capacity to invest in the energy world of tomorrow and, in turn, secure the viability of RWE as a whole. Our Group will thereby be even better placed to fulfil its responsibility towards its shareholders, employees and society.”
“In light of the radical changes to the energy landscape, this is a necessary step and the right one. By taking this decision, we are giving the entire workforce long-term prospects. Only a healthy RWE is a secure employer. We hope that the restructuring will create new jobs in future-oriented business fields over the medium and long term,” said Frank Bsirske, Deputy Chairman of the Supervisory Board of RWE AG.
The IPO of the new subsidiary is scheduled for late 2016. In connection with a capital increase at the new company, some 10 percent of new share capital will be placed on the market. The additional capital will enable the new subsidiary to step up its capital expenditure in renewable energy and the trends of the energy world of tomorrow, RWE said. The company added that it will increase its financial flexibility with regard to the nuclear phase-out. The shares of the new company will be an asset that may be used to cover nuclear provisions if necessary, RWE concluded.