Water Industry News
RWE To Pursue Initial Public
Offering for American Water
VOORHEES, N.J.--(BUSINESS WIRE)--March 24, 2006--The Executive
Board of RWE AG, parent company to American Water, decided to pursue
an initial public offering (IPO) in the U.S. for the shares of
American Water as the most attractive option for RWE and the
U.S.-based company, its employees and customers. This decision will
return American Water to its status as a publicly-traded company. RWE
had previously announced on November 4, 2005 its intention to divest
American Water either through an IPO or by selling American Water to a
group of financial investors.
The IPO will result in a publicly-traded company that is focused
on water and wastewater in the U.S. and dedicated to maintaining a
high level of service and quality.
The sales process is expected
to be initiated shortly through
filings for approval with certain state public utility commissions.
The IPO will require filing of a registration statement with the U.S.
Securities and Exchange Commission (SEC). The transaction will also be
subject to the approval of the RWE AG Supervisory Board. The target is
to complete the transaction during 2007.
RWE provides customers with electricity, gas and water as well as
services related to these products. The company's core markets are
Germany, the UK and Continental Europe. In fiscal year 2005, approximately 86,000
employees worldwide within the RWE Group generated sales of about EUR
American Water, headquartered in Voorhees, New Jersey, is the
largest and most geographically diversified provider of water services
in North America. The company has regulated and non-regulated utility
businesses located across 29 states and three Canadian provinces. In
fiscal 2005, 6,850 American Water employees generated over $2.2
billion in revenues. The company also serves over 18 million people
with clean drinking water and wastewater services.