EDF Board To Meet April 16 On Potential UK Asset Sale-Source
April 06 2010 - 10:18AM
Dow Jones News
French state-controlled Electricite de France SA (EDF.FR) has
called for a meeting of its board on April 16 to decide over the
potential sale of its U.K.-based electricity distribution asset, a
person familiar with the matter told Dow Jones Newswires
Tuesday.
EDF said last October it was considering a disposal of the U.K.
unit, but Chairman and Chief Executive Henri Proglio has been
adamant, until now, that no decision has been made on whether the
deal will go ahead. The sale of the unit could reduce the company's
debt by as much as GBP5 billion.
"The process is going on but so far, no decision has been
reached. A final decision will be made during the group's board
meeting," Proglio told Dow Jones Newswires in early March.
The sale process was put in motion in October by Proglio's
predecessor, Pierre Gadonneix, as part of a plan to address the
group's looming debt. This followed a very expensive acquisition
spree during the summer of 2008, when EDF acquired U.K.-based
nuclear operator British Energy for GBP12.5 billion, and half of
the nuclear operations of U.S.-based Constellation Energy Group
Inc. (CEG) for $4.5 billion. A preliminary memorandum on the sale
was sent to a number of infrastructure funds and utility companies
in November.
At the end of December 2009, EDF's net debt stood at EUR42.5
billion, up 74% from EUR24.47 billion a year earlier.
-By Geraldine Amiel, Dow Jones Newswires; +33 1 40171740;
geraldine.amiel@dowjones.com;
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