FRANKFURT, Feb 17 (Reuters) - RWE (RWEG.DE) could add 16.5 billion euros ($18.8 billion) in value, or about two-thirds, if it divests its brown coal unit, activist investor Enkraft said on Thursday, maintaining its criticism that the group was not showing enough effort to do so.
Enkraft, which first disclosed a stake in the firm in September, specialises on energy investment and has a track record in renewables.
Enkraft's comments on Thursday are the latest in a back-and-forth with the company's leadership, which argues that a brown coal divestment requires political backing and cannot be pulled off easily given the impact on workers.
They come a day after RWE Chairman Werner Brandt hit back at Enkraft after the investor said the utility's supervisory board did not adequately reflect its strategic orientation. read more
"RWE's overall strategy communicated to date, in which phasing out lignite activities over a long period of time is a key component, does not do justice to the group's responsibility for its stakeholders and weakens long-term economic development," Enkraft said in the letter reviewed by Reuters.
"Our expectation of the executive board and supervisory board is that this overall strategy is reviewed and adjusted to ensure RWE's long-term success."
Enkraft said that 24 euros could be added per RWE share if the company was be valued in line with pure-play renewable peers -- a move that would require it to offload lignite.
Shares in Germany's largest energy producer earlier on Thursday reached their highest level in more than a decade after the group raised its full-year outlook, citing higher generation margins. They closed 4.7% higher at 38.6 euros per share.
RWE, asked about the latest letter from Enkraft, said it had nothing to add to the comments of its chairman.
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