RWE: Still Intend To IPO American Water As Soon As Possible

RWE: Still Intend To IPO American Water As Soon As Possible
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Τετ, 26 Μαρτίου 2008 - 03:53
RWE AG (RWE.XE) still intends to publicly list a majority of shares in its U.S.-based unit American Water as soon as possible, but hasn't made a decision yet on the exact timing of the transaction.
RWE AG (RWE.XE) still intends to publicly list a majority of shares in its U.S.-based unit American Water as soon as possible, but hasn't made a decision yet on the exact timing of the transaction.

"The timeline depends on the market environment and approval from the Securities Exchange Commission," spokeswoman Julia Scharlemann said. The SEC approval process is ongoing, she added.

Her comments came in response to recent press reports said that the transaction is unlikely to go ahead before the fall of this year. German daily newspaper Boersen-Zeitung Wednesday reported that the IPO is unlikely to go ahead before the second half of the year.

In January, Chief Executive Juergen Grossmann said that the transaction could occur by April or October, depending on capital market conditions.

Last November, RWE postponed the American Water IPO, citing unfavorable U.S. capital market conditions.

RWE plans to raise its dividend payout ratio to between 70% to 80% of recurrent net profit upon a successful floatation of a majority of American Water, compared with its normal payout ratio of 50% and 60%.

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