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Financially strapped French company AREVA gets a lifeline. EDF in dire financial straits, too.

AREVA EDF crumblingAreva receives offer for 10% stake in spun-off nuclear unit , Ft.com, 15 Dec 16
Deal would help recapitalise troubled French group 
Areva, the struggling French nuclear group, received a firm €500m offer for a 10 per cent stake in a new nuclear fuel company that will be split off from its parent in a wider reshaping of the French nuclear industry.

Areva is preparing to split off its uranium mining and nuclear fuel activities into NewCo as part of a government-backed rescue after the group was forced to the brink of collapse under the weight of its own debt this year.

Earlier this year it was agreed that the other half of Areva, the troubled reactor business, would be taken over by EDF, the larger French nuclear group, in a deal that values that part of the business at about €2.5bn.

 On Thursday evening the company said it had received a firm offer for 10 per cent of the new company.The deal, if it goes ahead, will go another step towards recapitalising Areva. This will all come on top of a state-backed capital raising planned for early next year……..

EDF, the other major company in the sector, lost more than a tenth of its stock market value on Thursday after it warned of lower 2017 earnings becasue of an expected drop in power prices…….

Shares in EDF were down 12 per cent on Thursday. The stock has fallen 23 per cent over the past year after repeated warnings of weak profits. https://www.ft.com/content/4a1d5af6-c319-11e6-9bca-2b93a6856354

December 16, 2016 - Posted by | business and costs, France

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