Bloomberg News

RWE to Offer Suewag Stake to Bidders Next Week, Diez Mayor Says

January 12, 2012

Jan. 12 (Bloomberg) -- RWE AG, Germany’s second-largest utility, will offer a majority stake in its Suewag Energie AG unit to municipalities and regional energy companies next week, according to the mayor of Diez in Rhineland-Palatinate.

RWE’s 78 percent stake in the Frankfurt-based unit may be valued at about 800 million euros ($1 billion), Mayor Max Einer said today by telephone, representing a bidding group in the region. Annett Urbaczka, a spokeswoman for RWE, declined to comment when contacted by Bloomberg News.

Germany’s utilities, including EON AG, the largest, have extended cost-saving and asset-sale programs to curb losses from Chancellor Angela Merkel’s decision to close nuclear reactors. Essen-based RWE is raising as much as 11 billion euros to reduce debt and fund energy projects. It’s also selling assets abroad such as gas fields in Egypt and its Czech NET4GAS gas-grid unit.

A group of municipalities and regional energy companies formed on Jan. 9 to bid for the Suewag stake, according to a statement released yesterday.

--Editors: Amanda Jordan, Stephen Cunningham

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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