The liberal president’s government Emmanuel Macron had already announced on July 6 its desire to renationalize EDF as part of its efforts to relaunch the nuclear energy and now confirmed that it will do so through a takeover bid.
The operation on the 15.9% of the capital that the French State does not yet own will be based on an offer of €12 per share (12.3 dollars) and 15.64 euros (16 dollars) for OCEANE (convertible bond), according to the Ministry of Economy.
The government of France, led by Prime Minister Elizabeth Borneplans to formalize the offer for the beginning of September.
The announcement, which coincided with the return of EDF to the Stock Exchange after requesting its suspension on July 12, generated a rise of almost 15% in the shares of the energy group, at the beginning of the exchanges.
Around 09:30 in France (04:30 in Argentina), the share increased by 15.11%, at 11.77 euros (12 dollars), thus approaching the price of the offer proposed by the government. If the takeover bid is successful, the group will leave the trading floor.
EDF, whose debt could exceed 60,000 million euros (almost 61,500 million dollars) at the end of 2022, saw its financial situation further deteriorate due to the government’s decision to force it to sell cheaper electricity rivals to reduce household bills.
The announcement comes as the group also faces a series of challenges such as building new EPR reactors announced by Macron or the current suspension of half of its 56 reactors due to maintenance or corrosion problems.
Source: Ambito
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