France to pay 9.7 billion euros to take full control of EDF By Reuters

2/2© Reuters. FILE PHOTO: View of the company logo of Electricite de France (EDF) on exnessthe facade of EDF's headquarters in Paris, France, July 7, 2022. REUTERS/Johanna Geron2/2

PARIS (Reuters) -France's government is offering 12 euros per share to take full control of EDF (EPA:EDF) in a 9.7 billion euro ($9.85 billion) buyout offer that gives it a free hand to run the group as it contends with a European energy crisis.

The finance ministry said in a statement on Tuesday the price represented a 53% premium to the closing price of EDF shares on July 5, the day before the government announced its intention to fully nationalise Europe's biggest nuclear power operator.

The state already owns 84% of EDF, which has been grappling with unplanned outages at its nuclear fleet, delays and cost overruns in building new reactors, and power tariff caps imposed by the government to shield French consumers from soaring electricity prices.

The finance ministry said the buyout offer would be filed with the stock exchange regulator by early September, and that its plan was to delist the company.

Sources had told Reuters last week the government would offer close to 10 billion euros to buy the 16% of EDF it did not already own, once taking into account outstanding bonds and a premium for minority shareholders.

"It's an investment that will allow us to invest massively in nuclear," Budget Minister Gabriel Attal told France info radio after the announcement on Tuesday.

($1 = 0.9846 euros)

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