PARIS (Reuters) – EDF announced Friday a series of measures to strengthen its financial structure, including a capital increase of four billion, but postponed its decision on its investment in the expensive British nuclear project Hinkley Point.
the government reaffirmed at the same time support for the public electrician, which he holds close to 85%, by announcing that the state would participate in up to three billion euros to its future recapitalization.
EDF also said in a statement that it intends to sell for around ten billion euros of assets in 2020 to improve its financial strength in a context of falling electricity prices.
This will include opening up the capital of its subsidiary RTE, the french electricity grid, which will be prepared by summer with the objective to implement the transaction before the end of the year.
the group has further reduce its investment to 10.5 billion euros in 2018, a decline of almost two billion compared to 2015. But by integrating its regulated activities, EDF will invest between 12.5 and 13.5 billion euros a year over the next three years.
These decisions were announced at outcome of a board which has postponed the decision to carry out an investment of EUR 23 billion in the UK EPR project Hinkley Point, did you learned from sources close to the dossier.
CONSULT THE CEC
According to a government source, the decision could not intervene at the back and the British authorities have been prevented.
The postponement follows the decision of CEO Jean-Bernard Levy consult its central works council (CEC) on the controversial project to meet a requirement of the elect who threatened to go to court.
Always for strengthen its financial position, EDF will increase its savings program in the amount of at least one billion euros in 2019 compared to 2015, having already reduced costs of about 300 million last year.
the group also announced its intention to propose a payment option for stock dividends for the years 2016 and 2017, the state has accepted, a statement of the ministries of Economy and Finance .
to finance the planned capital increase by the close of the 2016 accounts of EDF, the state will use mainly expected revenue of capital openings airports of Nice and Lyon and possible new investments declines in groups of which he is a shareholder, said the government source.
These measures are part of a medium term plan to be presented to the EDF Board of Directors in December.
the government promised Wednesday that the vigilance of the french State to EDF was “full” after a meeting at the Elysee Palace on the financial position of the group, with special attention on investment of ‘Hinkley Point, shared two thirds / one third between EDF and the Chinese CGN, already allies to build two reactors in China.
(Cyril Altmeyer and Geert de Clercq, edited by Yann Le Guernigou)
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