RWE Said to Sell Its 58% of Regional German Utility This Week
RWE AG (RWE) plans to sell 58 percent of a regional utility to Thuega AG, Energieversorgung Mittelrhein GmbH and Koblenz city this week as part of an asset-disposal program, according to two people familiar with the matter.
The city council will decide on purchasing RWE’s stake in Koblenzer Elektrizitaetswerk und Verkehrs-Aktiengesellschaft, or Kevag, on Dec. 19, with the deal due to be signed at the end of the week, said the people, who asked not be identified as talks are private. The city owns 40 percent, according to its website.
“We are well on track,” said Thomas Knaak, a spokesman for the city, when asked whether Koblenz had decided to take part in the acquisition. He declined to elaborate. Officials contacted at RWE, Thuega and EVM declined to comment.
The stake held by Germany’s second-largest utility would be valued at 100 million euros ($132 million) to 150 million euros, according to Sebastian Kauffmann, a Credit Agricole SA analyst.
RWE, like German utilities including EON SE, is disposing of assets to cut costs after Chancellor Angela Merkel ordered the halting of nuclear reactors by 2022 following the Fukushima meltdown in Japan. The company has sold more than 1.6 billion euros of the 7 billion euros of disposals planned by the end of 2013, Executive Board Member Bernhard Guenther said on Nov. 14.
EON has sold more than 13 billion euros of its 15 billion- euro program, Chief Executive Officer Johannes Teyssen said Nov. 13. It began disposals during the summer of 2010, before RWE.
The combination of Kevag and EVM would create an integrated supplier of electricity, gas and water.
Stadtwerke Koblenz GmbH owns 54.5 percent of EVM and Thuega 41.5 percent, according to a presentation on EVM’s website.
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