German RWE to split up company

Germany New listed company to focus on renewables.

RWE, the second largest energy company in Germany, will split its business into two companies in 2016. The reason is that RWE is under financial pressure as a result of the ongoing transformation of the European energy industry. RWE will bundle renewable generation, grids and retail in a new, yet unnamed subsidiary ("NewCo"), while the conventional power generation and energy trading activities form the basis for the continued operations of RWE AG. RWE plans to make a capital increase at NewCo by an IPO in Q4, but still be the main shareholder of the new subsidiary. At today’s fiscal 2015 presentation, RWE - as previously announced - reported a loss of €200 million after impairments of €2.9 billion, primarily for conventional power plants in Germany and the UK. Further savings of EUR 500 million and a proposal that virtually no dividend should be paid to shareholders was announced at the same time.

http://www.rwe.com/web/cms/en/37110/rwe/press-news/press-releases/press-releases/?pmid=4014653

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