- RWE (OTCPK:RWEOY) announces plans to spin off its renewable energy, grids and retail operations into a new publicly traded entity by the end of next year.
- RWE says it will list 10% of the spinoff in the form of a capital increase, subject to approval at a Dec. 11 board meeting, and additional stakes may be sold at the same time or at a later date.
- The move comes after RWE had long shunned the strategy of its peer E.ON (OTCPK:EONGY), which will split its conventional power, trading and production operations into a new company next year.
- RWE shares trade as much as 8.5% higher in Frankfurt, but the stock is the biggest decliner on the DAX Index this year, falling 55%.