RWE has rejected a proposal from the Inkraft Fund against the utility company's plan to seek shareholder approval for the issuance of convertible bonds without granting existing investors the option to subscribe to them, stating that this aligns with market practices. In response to the proposal submitted ahead of the group's annual general meeting scheduled for May 4, RWE mentioned that subscription rights are subject to strict legal deadlines and limit its ability to take advantage of favorable market conditions.
In a statement on its website, RWE said: "A bond without subscription rights can be issued flexibly and quickly under terms attractive to the company and in line with the market." The Inkraft Fund revealed its stake in RWE in 2021 during its attempt to pressure the group to separate its lignite activities and presented the proposal on the grounds that the lack of subscription rights allows the company to grant preferential treatment to certain investors.
The proposal is primarily in response to RWE's decision to issue €2.4 billion ($2.6 billion) in convertible bonds exclusively for Qatar Investment Authority as part of the German group's move last year to acquire clean technology activities from Con Edison for $6.8 billion.
