Elliott Advisors Responds to RWE AG's Investment Strategy Adjustment Announcement

Elliott Advisors (UK) Limited, which advises funds holding nearly 5% economic interest in RWE AG, has publicly responded to RWE's recent decision to significantly reduce its investment program. On March 24, 2025, the firm welcomed the company's initiative to cut its 2025-2030 investment program by €10 billion, which amounts to a 25% reduction. This decision is seen as a pivotal measure in moving towards a more disciplined approach to capital allocation.

In their statement, Elliott emphasized the importance of stricter investment criteria, raising return targets, and expediting RWE's farmdown strategy. They view these actions as essential steps forward, marking a timely shift in the company's financial conduct. However, despite this positive outlook, Elliott expressed disappointment regarding the ambiguity surrounding RWE's commitment to enhancing shareholder returns.

Given the announced capex reduction and ongoing undervaluation of RWE, Elliott believes there lies a significant opportunity to amplify the existing share buyback program. In a market increasingly driven by shareholder value, the urgency for explicit commitments regarding return enhancements is palpable.

The statement concluded with Elliott looking forward to a continued constructive dialogue with RWE, as they navigate this transformative period. The dialogue is expected to focus on not just the financial strategies, but also on how RWE can present its growth and valuation to shareholders in a more optimistic light.

About Elliott Advisors

Elliott Investment Management L.P. and its affiliates manage an impressive portfolio, with approximately $72.7 billion in assets as of the end of 2024. Established in 1977, it stands as one of the oldest continuously managed funds in the market. Elliott's investors include a diverse array of entities such as pension plans, sovereign wealth funds, and high-net-worth individuals, making it a key player in financial markets.

The firm’s commitment to empowering companies through strategic oversight and advocacy is illustrated by this engagement with RWE. As a hedge fund known for taking an active role in management and corporate governance, Elliott maintains a keen focus on maximizing shareholder value across its investments.

Media Inquiries

For media inquiries, interested parties are encouraged to reach out to:

- Alice Best, Elliott Advisors (UK) Limited, London: +44 203 009 1715, [email protected]
- Thomas Katzensteiner, Charles Barker, Frankfurt: +49 69 79 40 90 25, [email protected].

In conclusion, the ongoing developments between Elliott Advisors and RWE AG signal an interesting phase in corporate investment strategies, particularly regarding the expectations surrounding shareholder engagement and returns. The interaction will be watched closely by both the market and investors as it unfolds.