Activist fund ENKRAFT has taken a stake in RWE (RWEG.DE) and is calling for a separation of the company’s brown coal activities to remove the burden of a legacy business that has weighed on the value of shares in Germany’s largest power producer.
ENKRAFT, which has a track record in investing in the renewable energy sector, now holds more than 500,000 shares in RWE — worth 16.4 million euros ($19 million) at current prices — it said in a letter to management seen by Reuters.
This gives it the right to request items be put on the agenda of annual general meetings under German stock market regulation.
Activist investor Engine No. 1 has shown that small stakes can be effective when it won three board seats at oil major Exxon Mobil (XOM.N) earlier this year through what sources said was a mere $12.5 million investment. read more
RWE has undergone a major shift in recent years and is now one of Europe’s largest renewable players with an installed capacity of 9.4 gigawatts (GW), a result of the break-up of former division Innogy in a deal with E.ON (EONGn.DE).