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Wed 18 Mar 2015 08:00 PM

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RWE says in talks with Arab investor on cooperation

German utility is earlier reported to be mulling sale of 10% stake to Abu Dhabi investors

RWE says in talks with Arab investor on cooperation
(Photo for illustrative purposes only)

German utility RWE is in talks with an Arab investor about several possible forms of cooperation, a spokeswoman for the company said.

She said RWE had been approached by the investor a few months ago and no agreement had been reached so far.

Bloomberg earlier reported RWE was considering selling a 10 percent stake to Abu Dhabi investors, adding Sheikh Mansour bin Zayed Al Nahyan was among the investors who might participate in the investment, which would be valued at about $1.5 billion based on RWE's current market price.

RWE shares were up 4.3 percent to 24.69 euros by 1516 GMT, leading the European utilities index 0.9 percent higher.

The shares are down 8 percent this year so far and more than 70 percent since 2007, wiping out nearly 40 billion euros ($42.4 billion) in market value.

RWE warned last week that profits and investments would fall further this year, highlighting tough conditions for utilities in Europe where they face weak energy demand and competition from renewables.

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