In August, posters appeared on billboards all over Germany, asking a single, stark question: “What would you do if you could start afresh?”
The question was posed by the energy company RWE. Now the second half of its campaign is going live, with colorful posters and TV and radio advertisements announcing its own fresh start. RWE is introducing its new subsidiary to German consumers and investors. The company will inherit the “clean” parts of its parent company’s business: renewable energy, networks and retail. “Energy is becoming Innogy,” goes the confident catchphrase.
For Peter Terium, RWE’s chief executive, Innogy’s spin-off marks a new era of freedom for the parent company, which has been battered by Chancellor Angela Merkel’s drive to wean Europe’s largest economy off fossil fuels by 2050. But for investors, too, the company’s strategic shift offers significant opportunities.
The flotation will take place on October 7. With a volume close to €5 billion, around $5.62 billion, it will be the biggest share issue in Germany since Infineon and Deutsche Post came to market in 2000.