France will pay 9.7 billion euros to take full control of EDF

France will pay 9.7 billion euros to take full control of EDF

The French government has offered 12 euros per share to take full control of EDF, in a 9.7 billion euro ($9.85 billion) takeover offer that would give it a free hand to lead the group in its fight against the energy crisis plaguing the region.

The Economy Ministry said in a statement on Tuesday that the price represents a 53% premium over the closing price of EDF shares on July 5, the day before the government announced its intention to fully nationalize the largest operator of nuclear power in Europe.

The French State already owns 84% ​​of EDF, which has had to face unforeseen interruptions in its nuclear park, delays and cost overruns in the construction of new reactors, as well as caps on electricity rates imposed by the Government to protect French consumers from rising electricity prices. The French economy ministry said the takeover offer will be submitted to the stock exchange regulator in early September and that its plan is to delist the company.

Last week, some sources told Reuters the government would offer around 10 billion euros to buy the 16% of EDF it does not already own, one taking into account outstanding bonuses and a premium for minority shareholders.

“It is an investment that will allow us to bet massively on nuclear power,” French Budget Minister Gabriel Attal told France Info radio after Tuesday’s announcement. At 0705 GMT, EDF shares were up 15.3% at 11.79 euros, having resumed trading following the French state’s offer.

EDF shares closed at 10.2250 euros on July 12, the last trading day before its suspension.

Melissa Galbraith
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