RWE completes acquisition of Essent
On September 30, 2009, RWE completed the acquisition of Dutch-based energy utility Essent N.V. We have taken a 100 % interest in the company, which is headquartered in Arnhem. Essent’s 50 % stake in EPZ, the joint venture which runs the Borssele nuclear power station, has been carved out of the transaction and will remain under the ownership of Essent’s former shareholders for the time being. A court ruling on this part of the business is pending. Neither Essents environmental operations, nor its distribution grid were taken over by RWE, either. On June 23, 2009, the European Commission had given the go-ahead on condition that Essent’s 51 % stake in Stadtwerke Bremen (swb) be divested. This transaction was concluded on October 21. The buyer was the Free Hanseatic City of Bremen, which sold the shareholding on to the Oldenburg-based energy utility EWE AG. Including the divestment of the stake in swb, the spin-off of the EPZ shareholding and further adjustments, the Essent deal has a transaction value of roughly € 7.3 billion. Thanks to the acquisition, RWE has advanced to become one of the leading energy utilities in the Benelux region. Essent will be managed by a four-member executive board, headed by Peter Terium (46), who is of Dutch nationality. Offices previously held by Mr. Terium include that of Chairman of the Board of Directors of RWE Supply & Trading.
RWE disposes of more shares in American Water
RWE further reduced its stake in American Water in August, placing 40.25 million shares in the market via a consortium of banks at a price of US$ 19.25 per share. This resulted in net proceeds of about US$ 750 million (€ 525 million). Our stake in American Water currently amounts to 23.5 %. We had conducted American Water’s initial public offering in April 2008 and reduced our interest in the company to 46.6 % in June 2009 through additional share placements. Consequently, the company was deconsolidated. American Water’s net debt, which amounted to € 4,240 million as of December 31, 2008, is no longer stated on our balance sheet.
RWE to pool power plant new-build activity in RWE Technology GmbH
In the future, we will bundle the construction of power plants across all countries throughout the RWE Group in a single entity. A new Group company, RWE Technology GmbH, will pool our expertise in this field, leveraging synergies in the implementation of power plant projects. It will take up operation on January 1, 2010. The Board of Directors will be headed by Matthias Hartung, who is currently a member of RWE Power’s Executive Board. RWE is building six major power stations in Germany, the Netherlands and the UK. Additional plants are planned.
RWE included in Dow Jones STOXX 50 Index
RWE joined the Dow Jones STOXX 50, the renowned stock index, effective September 21, comprising the 50 European companies with the highest free-float market capitalisation. RWE’s inclusion is very important as it means that funds tracking the STOXX 50 now also contain RWE shares. The composition of the Dow Jones STOXX 50 is reviewed and adjusted once a year.
RWE again qualifies for two acclaimed sustainability indices
RWE was included in the climate protection index of the Carbon Disclosure Project (CDP) for the third time since 2006 and 2008. The decision was announced in September by the CDP investor group. This honour is in recognition of our comprehensive reporting on our CO2 emissions and climate-protection strategy. The CDP is an initiative of large institutional investors formed to make corporate CO2 emissions and climate-protection strategies transparent to the financial market. Moreover, RWE has been included in the Dow Jones Sustainability (DJSI) index family for a further year. The Dow Jones Sustainability indices are established and published by SAM Sustainable Asset Management in co-operation with Dow Jones Indexes. They are widely recognised as the world’s prime index group for corporate performance in the field of sustainability.