The move by RWE to concentrate its energy-related activities in Europe was signalled in May this year and is part of a strategy to dispose of core businesses.
RWE’s holding in Consol will be reduced from 73.6% to 48.9%, through the sale of 14.1 million shares in a private placement sale. At the same time, Consol will place an additional 11 million newly issued shares with the same investors.
Shares will be sold for US$17.82 per share, a discount of about 3.7% relative to the closing price on the New York Stock on September 17.
The sale will wipe EUR500 million off RWE’s net debt and generate an inflow of US$244 million to RWE.
