EDF Delays Sale Of UK Distribution Assets To July

EDF Delays Sale Of UK Distribution Assets To July - Source

French state-controlled power behemoth Electricite de France SA (EDF.FR) has delayed the sale of its U.K.-based distribution network to July from an initial deadline of June 21 as the group is finalizing negotiations with its unit pension trustees, a person familiar with the matter told Dow Jones Newswires Monday.

"The deadline has been postponed by several weeks, and a final deadline hasn't been set yet, but it will take place in July," the person told Dow Jones Newswires.

Electricite de France has been looking to sell its U.K. power distribution business as part of plans to reduce debt. People familiar with the situation earlier said buyers were likely to be looking at valuations of around GBP4 billion to GBP4.5 billion for the assets.

The people said last month that three parties were selected as second-round bidders for the assets: Hong Kong-based Cheung Kong Infrastructure Holdings Ltd. (1038.HK) together with its affiliate Hongkong Electric Holdings Ltd. (0006.HK); a consortium comprising sovereign-wealth fund Abu Dhabi Investment Authority, Macquarie Capital and Canada Pension Plan; and U.K. utility Scottish & Southern Energy PLC (SSE.LN) along with Canadian infrastructure fund Borealis.

EDF "is finalizing talks with EDF Energy's pension trustees," the person said, adding that the delay was needed "to allow bidders to fully take into account the finest details of the deal with (EDF Energy's) pension funds," the person added.

The person declined to say why the discussions with the pension trustees were taking more time than initially scheduled.

The delay has nothing to do with a potential drop of interest from potential bidders and so far, there are still three bidders for EDF Energy's distribution assets, the person said, without elaborating.

EDF Energy supplies electricity to 7.8 million homes and businesses in the east and southeast of England. It accounts for 28% of the electricity distributed in the U.K.

- By Geraldine Amiel, Dow Jones Newswires; +33 1 40171740; geraldine.amiel@dowjones.com;

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