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Activist Investor Urges Germany’s RWE to Exit Coal Quicker

  • Enkraft says RWE shares could double as part of plan: letter
  • Also says utility could generate billions selling CO2 permits
Updated on

A small activist investor wants RWE AG to accelerate a transition to clean power, saying the German utility giant could double in value by closing and separating its lignite operations more quickly. 

The shares could exceed 61 euros ($72) as part of a “credible plan” to divest assets run on lignite, the most polluting form of coal, Enkraft Capital GmbH said. These are no longer economically relevant, it wrote in a Sept. 6 letter to RWE’s chief executive officer and its chairman, a copy of which was seen by Bloomberg News. Another large German fund, Deka Investment GmbH, said it supports Enkraft’s view.