French government offers EUR 10bn for EDF renationalisation

The French government has offered almost €10bn to fully take over EDF, it was reported on Tuesday, offering minority shareholders a 53% premium to the 5 July closing price.

France’s finance ministry said it would offer €12 per share - or €9.7bn total - as the nuclear energy generating giant resumed trading, having been suspended for a week as markets awaited details of the government’s buyout proposal.

The state already owns 84% of the company, and previously said nationalisation would increase the country’s energy security - particularly amid the gas crisis caused by Russia’s ongoing invasion of Ukraine.

EDF received a €3bn cash injection from the government in the spring, while S&P has estimated the company’s debt could be near €100bn by the end of 2022.

Reuters cited a banker “with knowledge of the matter” as saying the French government would likely need to pour further cash into the firm in the near future.

The offer would be filed by September, with the finance ministry hoping to complete the nationalisation and delisting by the end of October.

Reporting by Josh White at Sharecast.com.