Essen, 12 November 2003This pressinformation is more than two years old

RWE Reaches Agreement with RWE Gas Municipal Shareholders (Ad hoc)

  • RWE Gas to be fully integrated as planned into new Group structure

RWE AG in Essen and the Dortmund-based RWE Gas AG's municipal shareholders today reached an agreement to fully integrate RWE Gas into the Group's new structure. RWE Gas will as originally envisioned be merged into RWE Energy in Dortmund. Thus, entrepreneurial responsibility for the Group’s Continental-European gas sales and network activities lies solely with RWE Energy. The municipal shareholders will receive a one-off payment of €100 million, and, for the fiscal years 2004 through 2008, an annual guaranteed dividend of €48 million. They will have a 20.03-percent stake in the newly established RWE Westfalen-Weser-Ems AG. With the transfer of the RWE Gas assets, RWE Energy assumes full entrepreneurial control. In 2009 the RWE Gas municipal shareholders will sell their full stake to RWE Energy AG for €800 million. This agreement is subject to the approval of the appropriate supervisory bodies on the parts of both negotiation partners.

RWE CEO Harry Roels stated today: "With the complete integration of RWE Gas, RWE has succeeded in laying the foundation in the new service regions of Westfalen-Weser-Ems and Rhein-Ruhr for the best possible customer orientation and for organic growth in our business areas of electricity, gas and water.” The agreement with the RWE Gas municipal shareholders enables RWE to realize the annual €300 million in synergies associated with the Group’s new structure. The new structure creates clarity and offers reliability for its customers, employees and shareholders. It reinforces RWE’s control over gas activities throughout Germany. It also provides the Group with the strategic flexibility necessary to serve as a basis from which to realize further efficiencies in the future.

The transaction has a cash value of €900 million. The RWE Gas municipal shareholders’ stake had been valued in accordance with the April 24, 2002 stakeholders’ contract at €668 million. The agreed increase in value is acceptable to RWE because it enables RWE Energy to assume sole entrepreneurial control of the Continental European gas sales and network activities. This will also serve as the basis for increasing efficiencies and for further market development together with our municipal shareholders.

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

RWE Aktiengesellschaft
Investor Relations
Altenessener Straße 27
45141 Essen

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