Essen, 18 September 2003This pressinformation is more than two years old

RWE to reduce its interest in CONSOL to below majority (Ad hoc)

  • RWE pushes ahead with disposal program in core businesses
  • Interest in Consol to be reduced to 48.9%
  • Deconsolidation in fiscal 2003


On September 18, 2003 RWE agreed to sell 14.1 million of its 58.0 million shares in CONSOL Energy Inc., the Pittsburgh-based US coal-mining company, in a private placement with various investors. Simultaneously Consol agreed to place an additional 11.0 million newly issued shares with the same investors. The transaction is scheduled to close on September 23, 2003.

As a result, RWE's interest in CONSOL's outstanding common stock will be reduced from 73.6 percent to 48.9 percent. In addition, RWE is granting the placement agent the right to place any or all of RWE´s remaining CONSOL shares. Should RWE still hold CONSOL shares following the expiration of this placement right, then RWE intends to dispose of its remaining CONSOL shares in the foreseeable future. In May 2003, RWE announced that it was considering the disposal of all or part of its interest in CONSOL. This follows RWE´s decision to concentrate its energy-related activities on Europe.

The disposal will result in an inflow of approximately US-Dollar 244 million (Euro 218 million) to RWE. The price to be received by RWE and Consol will be US-Dollar 17.82 per share before deduction of a placement fee. This price represents a discount of about 3.7 percent relative to yesterday's closing price on the New York Stock Exchange. The deconsolidation will result in an estimated Euro 0.5 billion reduction in net debt and a Euro 3.1 billion reduction in long term provisions.

The shares of common stock have not been registered under the United States Securities Act of 1933 and may not be offered in the United States absent registration or an applicable exemption from registration requirements.


Please contact our Investor Relations Team with any questions that you may have:

RWE Aktiengesellschaft
Investor Relations
Altenessener Straße 27
45141 Essen
Germany


T +49 (0) 201-5179-3112
E-Mail
RWE Aktiengesellschaft
Investor Relations
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c/o RWE Supply & Trading
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London EC2R 8HP
United Kingdom
T +44 (0) 20 7015 5459
: This pressinformation is more than two years old