FRANKFURT, Dec 1 German utility RWE moved to restructure its businesses to better absorb the cost of nuclear plant closures, sending its shares up nearly 17 percent, their biggest one-day gain in seven years.
To extract funds from its healthier businesses Germany’s second-biggest utility will hive off its renewables, grids and retail units into a separate entity and sell a 10 percent stake in an initial public offering late next year.
It said it would keep its conventional power generation business, including its remaining nuclear plants and the liability for their shutdown, reports Reuters.
RWE said it could sell further stakes in the new subsidiary at some point, but added it would remain the unit’s majority shareholder over the long term.
RWE said the new unit, which will begin operations as an independent company in the course of 2016, would employ about 40,000 of the group’s 60,000 staff