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Renationalisation of EDF: the last shareholders forced to sell their shares to the State on 8 June

2023-05-26T17:40:23.090Z

Highlights: The State will hold 100% of EDF's capital on 8 June. The remaining 2% of shareholders demanded a better redemption price for their shares. Valued at 9.7 billion euros, the acquisition of the French electrician was announced in July 2022 by Prime Minister Elisabeth Borne. The State, which until now owned 84% of the company, wanted to regain control, in particular to revive nuclear power more quickly, by financing the renewal of an aging fleet and the construction of at least six new reactors.


The State will hold 100% of EDF's capital on 8 June. The remaining 2% of shareholders demanded a better redemption price for their shares. D


The procedure to completely renationalize EDF will take place on June 8, as announced a few days ago by the Minister of the Economy Bruno Le Maire. The State will hold 100% of the company's capital on that date since the remaining 2% of shareholders will be forced to sell their shares, confirmed Friday the Autorité des marchés financiers (AMF).

The "squeeze-out" will take place that day, at a price net of any fee of 12 euros per share, and will cover 91,454,896 EDF shares, or 2.19% of the capital and 1.99% of the voting rights of the company, said the AMF in a statement.

Thus ends the process of renationalization of EDF, nearly a year after the announcement of the operation, soap opera with twists and turns punctuated by appeals by small shareholders challenging the price of 12 euros proposed for the redemption of their shares. Valued at 9.7 billion euros, the acquisition of the French electrician was announced in July 2022 by Prime Minister Elisabeth Borne.

Small shareholders rejected

With this takeover bid, the State, which until now owned 84% of the company, wanted to regain control, in particular to revive nuclear power more quickly, by financing the renewal of an aging fleet and the construction of at least six new reactors.

At the beginning of May, the court rejected the appeal of small holders of EDF who hoped to obtain a better price for their shares. The plaintiffs claimed at least 15 euros. At the opening of the capital in 2005, the share had been sold for 32 euros, with a 20% discount for employees at 25.60 euros.

After the Court of Appeal rejected this challenge, the Fonds commun de placement en actions (FCPE), which represents some 100,000 EDF employees or retirees who have invested their money in the group, announced the decision to bring an action for compensation before the Council of State. This action, which aims to obtain a form of price supplement, will not affect the end of the takeover bid and will be initiated after the implementation of the squeeze-out.

Source: leparis

All business articles on 2023-05-26

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