Italy: all eyes on Edison with EDF renationalisation – 05/10/2022 at 20:53

Italy: all eyes on Edison with EDF renationalisation - 05/10/2022 at 20:53

EDF is headquartered in the financial district of La Défense in Paris

MILAN (Reuters) – With the ongoing re-nationalisation of EDF, all eyes are on Edison, with investment funds and energy groups bracing for the possibility of putting the Italian subsidiary of the French company up for sale, three sources told Reuters.

The state on Tuesday submitted a takeover bid at 12 euros per share for the roughly 16% of EDF’s capital it does not already own, setting in motion a full renationalisation that should allow it to carry out projects entrusted to the electricity company against a backdrop of climate change struggles and soaring growth. energy prices.

The price is identical to the one that was announced on July 19 during the detailed presentation by the government of the project of full renationalization of the company.

The state has undertaken an “irrevocable” obligation to purchase at a price of 12.00 euros per unit all the shares it does not own, the Financial Markets Authority clarified in its conclusion. It is also offering a price per unit of €15.52 for the existing 2024 “Ocean” bond.

The offer is set to run from Nov. 10 to Dec. 8 next year, according to a schedule provided by the state in a press release detailing the operation.

EDF may also decide to sell its Italian subsidiary Edison, which it has owned since 2012 and which produces and distributes electricity from traditional and renewable sources.

“If we look at recent deals involving Italian renewable energy groups, the value of Edison can be estimated at around 8 billion euros,” said one of the sources.

It may be time for Edison to part ways with its parent company after completing its exploration and production exit this summer.

Italian infrastructure fund F2i, French investment firm Ardian, Czech power and infrastructure operator EPH, and several major Italian energy groups may be interested in Edison, the sources said.

F2i and Ardian declined to comment, while EPH could not be reached for comment.

When asked about the subject, an EDF spokesman stood by statements made in early August, when the group denied reports that it was considering selling Edison.

Edison CEO Nicola Monti told Reuters last week that he could not comment on EDF’s management changes and their impact on the Italian subsidiary, adding that Edison was in a “very solid” financial position.

(Reporting by Giancarlo Navazzo and Francesca Landini with Elisa Anzaline and Elvira Paulina in Milan and Benjamin Malle in Paris; French editing by Mathieu Protard; Editing by Tangi Solaiun)

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