According to its own statements, the Essen-based DAX group is taking over Con Edison Clean Energy Businesses Inc (Con Edison CEB), a leading operator and developer of solar systems and storage systems in the USA. Con Edison CEB has approximately 3 gigawatts (GW) of installed capacity and a development pipeline of more than 7 GW.
According to the further information, the purchase price is based on an enterprise value of 6.8 billion US dollars. From the first year, the acquisition is expected to contribute around 600 million dollars to RWE’s consolidated earnings. The acquisition and the additional growth are to be financed through debt instruments and an equity measure by RWE AG. RWE intends to increase equity by issuing a mandatory convertible bond to a subsidiary of Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA).
The mandatory convertible bond has a total nominal value of EUR 2.428 billion and a term of up to one year. The convertible bond will be converted into new bearer shares, which are expected to correspond to almost 10 percent of the current RWE share capital.
“Our equity measure creates the basis for financing the acquisition of Con Edison CEB and the additional green growth in the coming years,” said RWE CEO Markus Krebber. “I am pleased that QIA is supporting RWE’s ambitions to grow faster and stronger with additional equity.”
According to its own statements, RWE is sticking to the plan to pay a dividend of EUR 0.90 per share for 2022.
RWE describes the transaction as a “milestone”. With the closing of the transaction, which is expected in the first half of next year, RWE will become number 4 in the renewable energy sector and number 2 among solar power system operators in the USA, one of the world’s largest and fastest growing markets for solar energy Renewable energy. The “Inflation Reduction Act” also sets a stable and reliable ten-year framework for investments in clean energies.
The USA plays a key role in expanding the business with renewable energies and in RWE’s goal of becoming climate-neutral by 2040.
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