RWE Shareholders Vote Against Activist Motion to Spin Off Coal

RWE AG shareholders voted against a proposal by activist investor Enkraft Capital to separate the German utility’s lignite unit from its clean-energy operations.

About 97% of shareholders at the annual general meeting in Essen on Thursday rejected the proposal. Germany’s biggest power producer would have needed to initiate preparations for a breakup if at least 75% backed the plan.

The rejection is paving way for RWE to potentially hand its coal operations over to a state-controlled foundation, a structure that Germany’s ruling coalition is evaluating. If successful, it would free RWE from the plants, mines and liabilities tied to the ...