Press release BoxID: 268022 (RWE AG)
  • RWE AG
  • Opernplatz 1
  • 45128 Essen
  • Contact person
  • Volker Heck
  • +49 (201) 12 15120

RWE disposes of majority shareholding in American Water

(PresseBox) (Essen, ) .
- Shareholding reduced to around 49%
- Net debt deconsolidation of ca. €4.5 billion
- Proceeds of around $200 million from sale of shares

RWE has reduced its majority shareholding in US water utility American Water to a minority position.

After the initial public offering in April last year, a further 11.5 million shares have now been sold to the public through a group of underwriters. Before deducting bank fees the transaction will result in proceeds of around $200 million for RWE. In addition, RWE has granted the underwriters a 30-day "greenshoe option" to purchase up to 3.9 million additional shares.

Parallel to the sale of shares by RWE, American Water has increased its equity capital by around $250 million by issuing new shares.

With this combined transaction, RWE is reducing its shareholding in American Water from around 60% to ca 49%. The Group will now deconsolidate American Water in its balance sheet, which will lead to a decrease of around €4.5 billion in the net debt of RWE.