RWE's share sale will dilute municipal owners to 12%, CEO says

FRANKFURT, June 23 (Reuters) - RWE's municipal shareholders will own around 12% of Germany's largest power producer following a share sale to fund a €3.6 billion ($4.1 billion) deal to raise its stake in power grid firm Amprion, CEO Markus Krebber said on Tuesday.

This compares with a previous stake of 14%.

Qatar will remain RWE's single-biggest shareholder following the capital increase and hold a stake of just below 10%, while Norway's Norges Bank will "significantly increase" its stake as a result, Krebber said, without providing further details.

($1 = 0.8766 euros)

(Reporting by Christoph Steitz, editing by Thomas Seythal)