RWE AG may explore the possibility of selling the 16.7% interest that the German utility would acquire in E.ON SE as part of a multibillion-euro asset swap deal, RWE CFO Markus Krebber told Reuters.
The potential sale could bring RWE up to €4 billion in proceeds, which it intends to invest in its remaining renewables, fossil fuels and energy trading businesses, the news outlet reported Sept. 11, citing Krebber.
The executive also said RWE may also evaluate potential small acquisition targets in the renewable sector in some of the countries where the utility operates. "Don't expect giant transactions, but we want to grow in renewables and that wish entails keeping such options open," Krebber was quoted as saying.
Under the asset swap deal, E.ON would buy RWE's 76.8% stake in innogy SE and then make a public takeover offer in cash for the remaining ownership in innogy. RWE would receive 16.67% of the equity in E.ON by way of a 20% capital increase. The net result will be E.ON becoming an end-user focused company, while RWE gains a stake in E.ON and shifts its business toward generation.
