PARIS (Agefi-Dow Jones)–The EDF share soared on the Paris Stock Exchange on Tuesday, after the State announced on Tuesday that it intended to pay around 9.7 billion euros to withdraw the producer from troubled energies of the rating. Scheduled for the fall, this simplified takeover bid (OPAS) promises to leave historic shareholders unsatisfied.
“The State intends to acquire 15.9% of EDF’s capital as well as 60% of the bonds convertible and/or exchangeable into new or existing shares (Oceane) that it does not hold not,” the Ministry of Economy and Finance said in a statement.
Following these announcements, EDF shares, whose listing had been suspended since July 13, gained 14.9% to 11.75 euros.
The OPAS would be launched at a price of 12 euros per EDF share, coupon attached, and 15.64 euros per Oceane. The amount of 12 euros per share represents “respectively a premium of 53%, 46% and 34% on the closing stock market price of July 5, 2022 (eve of the day of the announcement by the Prime Minister of the intention of the State of holding 100% of the capital of EDF) and on the average stock market price weighted by the volumes of the last 60 days, and the 12 months preceding July 5, 2022”, underlined Bercy.
A question of sovereignty, underlines Bercy
For the Minister of Economy and Finance, Bruno Le Maire, quoted in the press release from Bercy, this operation “strengthens the energy independence of France”. “It gives EDF the necessary means to accelerate the implementation of the new nuclear program wanted by the President of the Republic, and the deployment of renewable energies in France”, underlined the Minister.
The Prime Minister, Elisabeth Borne, had announced at the beginning of July that the State had decided to increase to 100% of the capital of EDF. In the wake of this announcement, the stock price of the electrician had gained 30% before being suspended, to 10.23 euros. Trading resumed on Tuesday at 9:00 a.m.
The documents relating to the OPAS would be filed with the Financial Markets Authority by the beginning of September subject to the promulgation of an amending finance law for 2022, currently examined in the National Assembly, providing the necessary budgetary appropriations. to the offer, said Bercy.
This amending finance law must be approved by the National Assembly and the Senate for the funds to be released for the operation, explained a source in the Ministry of Finance.
The offer would then be opened “in the last days of September” for a closing in mid-October and a withdrawal from listing at the end of October, said the source in the Ministry of Finance. Moreover, the State does not need to seek authorization from the European Commission for this operation, added this source.
EDF for its part announced on Tuesday the constitution by its board of directors of an ad hoc committee, made up of three independent directors and responsible for examining the draft OPAS of the State. This ad hoc committee will propose the appointment of an independent expert and will follow its work before issuing a recommendation to the board of directors on the interest of the offer, explained EDF. EDF’s board of directors will then issue a reasoned opinion on the project, which will be included, like the expert’s report, in the company’s draft response document.
Fronde of employee shareholders
The takeover offer is “very attractive” and well above expectations in terms of timing and price, said Do Ake, an analyst at Octo Finances. Citi analysts abound and expect the success of the operation, the State, which must reach 90% of the capital of the electrician to trigger the withdrawal from the rating, already holding about 84% of EDF.
However, the price of 12 euros per share is much lower than that paid by investors at the time of the opening of the capital of the electrician at the end of 2005, ie 32 euros per share, or 25.60 euros for employees.
Even before the official announcement of the price of the operation, some minority shareholders opposed the very principle of nationalization. For “Energie en actions”, the association of employee shareholders and former employees of the group, the State “must be accountable for its management, which has the consequence of seriously despoiling a large number of savers”.
In theory, minority shareholders of EDF have the opportunity to challenge the valuation of the offer within ten days of its filing and lead to a delay of up to five months, explain analysts at JPM Morgan. But, given the extent of the pressures currently weighing on EDF, these shareholders should be reluctant to use this option, believes the financial intermediary.
Many operational difficulties
EDF is currently facing many difficulties. The group has had to lower its nuclear production forecasts in France for 2022 several times, due to a corrosion problem detected on certain reactors and suspected on others. On 12 of its 56 reactors in France, the group is currently carrying out a program to check and repair the pipes affected or potentially affected by this phenomenon.
The company is also being hurt by the government forcing it to sell more nuclear electricity at reduced prices to its competitors. Taken within the framework of the Arenh system (regulated access to historical nuclear electricity) in force until the end of 2025, this decision aims to deal with the surge in prices in Europe following the invasion of Ukraine. by Russia.
Forced to buy back the volumes sold at significantly higher market prices, EDF has assessed the impact of this measure on its gross operating surplus at more than 10 billion euros in 2022.
Following the renationalisation, the State should resume its discussions with the European Commission concerning the regulation of the energy market, in particular the reform of the Arenh, discussions which had been bogged down last year due in particular to disagreements over the future of EDF.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: VLV – ECH
(Giulia Petroni, Dow Jones Newswires, and Bruno de Roulhac, L’Agefi, contributed to this article)
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July 19, 2022 07:09 ET (11:09 GMT)