December 6, 2021 Read More →

ENKRAFT warns RWE to divest from brown coal or risk falling behind

Reuters:

RWE (RWEG.DE) risks falling behind in the fast growing and competitive renewables sector if it fails to quickly divest its brown coal activities, activist fund ENKRAFT said, criticising management for failing to come up with a rapid solution.

ENKRAFT in September disclosed a small stake in RWE, Germany’s largest producer, calling for a separation of the group’s brown coal division to shrug off a valuation discount that has weighed on shares. read more

In a letter to RWE’s management dated Dec. 3, ENKRAFT said RWE did not address the issue at its capital markets day in mid-November, when the group said its value would rise as part of a 50 billion euro ($56.6 billion) investment push. 

“Consequently, we have the impression that you fail to recognize the great strategic and economic importance of this issue for all RWE stakeholders,” ENKRAFT managing director Benedikt Kormaier wrote in the letter seen by Reuters.

“If you continue to avoid detailing a rapid solution of this problem, investors will have to ask themselves whether the Management Board and Supervisory Board are up to the company’s key strategic challenges,” he added.

[Christoph Steitz and Tom Kackenhoff]

More: Divest brown coal or risk losing out in renewables race, ENKRAFT tells RWE

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