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UTILITIES: RWE (RWE Baa2/NR/BBB+), Amprion (Baa1/NR/BBB+): Stake Sale

UTILITIES
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Likely credit neutral for both. We don’t expect meaningful deleveraging from RWE.

  • Bloomberg reported that RWE is looking to sell its 25% stake in Amprion. Likely buyers would be infrastructure funds and likely credit neutral.
  • Like TenneT, Amprion will have sizeable investment needs for the energy transition and needs backers who are in a strong position to provide equity.
  • The report mentioned a possible €2bn valuation which is around 0.4x turns of EBITDA. The company recently announced a new share buyback program of €1.5bn over 18 months, partly due to a slower pace of planned investments.
  • Current leverage is 2x, well below the policy ceiling of 3x. 
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Likely credit neutral for both. We don’t expect meaningful deleveraging from RWE.

  • Bloomberg reported that RWE is looking to sell its 25% stake in Amprion. Likely buyers would be infrastructure funds and likely credit neutral.
  • Like TenneT, Amprion will have sizeable investment needs for the energy transition and needs backers who are in a strong position to provide equity.
  • The report mentioned a possible €2bn valuation which is around 0.4x turns of EBITDA. The company recently announced a new share buyback program of €1.5bn over 18 months, partly due to a slower pace of planned investments.
  • Current leverage is 2x, well below the policy ceiling of 3x.