The government had announced its intention to renationalise the company earlier this month. This Tuesday, the takeover bid was unveiled as well as the timetable for this plan, which is supposed to ensure France’s energy independence.
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The renationalisation of EDF announced by Elisabeth Borne in early July will cost the public authorities nearly ten billion euros. The Ministry of the Economy announced on Tuesday July 19 the launch of a public purchase offer to get the company out of its economic and industrial difficulties. Rather than a law of nationalization, the government opted for a faster method: the repurchase of shares. But how and when will it proceed?
The state owns 84% of EDF, so it has to buy the remaining 16%. At a price of 12 euros per share, the calculation is quickly made. This gives a takeover bid of 9.7 billion. Or the upper range of what analysts had expected. It should be noted that at 12 euros per share, EDF does not sell off its market value because even if the share was worth 33 euros when it was launched in 2005, this represents today a capital gain of 53% compared to the stock market price. . A course noted the day before the announcement of the renationalization by the Prime Minister. It is also an increase of 34% compared to the average stock market price of the last 12 months. Moreover, the Paris Stock Exchange was not mistaken: Tuesday morning, the action jumped 15% at the opening.
Now that the government is out of the woods, the timetable is known. The takeover bid will be launched in September and closed in mid-October. This means that by the end of October EDF will therefore have left the stock market. However, Parliament must give the green light and vote on the amending finance law this summer to release the funds. Budgeted appropriations, assures the government. Because behind this renationalisation, the idea is to ensure France’s independence and energy sovereignty. The State wants to have free rein, in particular because it is embarking on very long-term projects such as the construction of six new EPR 2 reactors, or even eight more by 2050.
This project is urgent given the aging of the nuclear fleet. More than half of its 56 reactors are shut down for maintenance or because of corrosion problems. The Flamanville project is moreover more than ten years behind schedule and its commissioning is scheduled for the end of next year. Proof of this critical situation: France, which usually exports electricity at this time of year, must import it from Spain, Switzerland, Germany and Great Britain.