EDF Announces Preliminary Agreement To Buy Italy's Edison
December 27 2011 - 5:08AM
Dow Jones News
French state controlled utility group Electricite de France SA
(EDF.FR) said Tuesday that it signed a preliminary deal to increase
its stake Italian power utility Edison SpA (EDN.MI) to 80.7% from
50%, for EUR700 million.
According to a statement by EDF, EDF will buy a 50% interest in
TdE, which holds 61.3% of Edison, from Delmi, a holding company
controlled by and Italian utility company A2A SpA (A2A.MI). EDF
already owns a 50% stake of TdE. A2A issued a similar statement
Tuesday morning.
EDF said that, if the deal goes through, then it will own 80.7%
in Edison, with the new 30.7% interest being purchased at EUR0.84
per share.
EDF, a global player in nuclear power, has been pushing for
strategic control of Edison throughout 2011, an effort that aims to
strengthen the company's natural gas holdings. But EDF has met
resistance from Italian interests, forcing numerous extensions of
the existing shareholder pact. The groups face another deadline at
the end of December.
EDF also said that Delmi plans to buy a 70% stake in Edipower, a
company that owns nine power plants in Italy, from Edison and
Alpiq. Edison's 50% stake in Edipower will be purchased for EUR600
million, while Alpiq's 20% interest in the company will be acquired
for EUR200 million.
EDF said the total price of the Edipower stakes of EUR800
million was equal to the price paid by EDF for the TdE stake plus
EUR100 million.
The deal requires approval from the Italian market authority
Consob and corporate representatives, EDF said. The deal should
conclude no later than Jan. 31, 2012, according to the EDF
statement.
-By Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1740;
nadya.masidlover@dowjones.com
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