RWE Leads DAX Higher as It Details Split of Renewables Unit
- Innogy to pay 70-80 percent of net income to shareholders
- RWE credit risk falls as senior bonds transfer to new company
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RWE AG led gains in Germany’s benchmark DAX index as the nation’s largest electricity producer provided details of the new renewable energy, grid and retail business that it’s splitting from its conventional power generation operations.
The new company, called Innogy, expects to pay out 70 percent to 80 percent of adjusted net income to shareholders, including a “full dividend” for 2016, RWE said in a presentation at its Capital Markets Day in London on Thursday. Shares rose more than 6 percent, while the cost of insuring RWE’s debt fell as it plans to transfer senior debt to Innogy.