E•BOOM CAPITAL: French Power Giant Launches €1.5 Billion Tender Offer
Shares of French-based renewable energy company EDF Energies Nouvelles S.A. (Paris: EEN.PA) closed up 10% today after French state-controlled power giant Electricite de France SA (Paris: EDF.PA) announced on Friday it will launch a €1.5 billion offer for the 50% of EDF Energies Nouvelles it does not hold. Electricite de France will offer €40 a share in cash or 13 EDF shares for 11 EDF Energies Nouvelles shares. (€1 = $1.44 April 11)
Mouratoglou Group, which holds a 25.1% equity stake in EDF Energies Nouvelles, has irrevocably undertaken to contribute all of his shares to the tender offer, with 50% in cash and 50% in shares.
The tender offer will be launched on May 26 and will end June 15, with the settlement and delivery expected to take place on July 5, EDF said.
Electricite de France has been under pressure in recent weeks for its reliance on nuclear energy. Electricite de France shares are down 32% over the past year, while EDF Energies Nouvelles shares were up 2% for the past year at the market close April 7 prior to the tender offer announcement.
EDF Energies Nouvelles specializes in the generation of electricity through wind power throughout Europe. The company also produces hydro-electricity in France and Bulgaria. In addition, EDF Energies Nouvelles supplies solar water heaters and solar photovoltaic units manufactured by partner companies to both individual and business customers.
EDF Energies Nouvelles operates in the U.S. through subsidiary enXco, based in San Diego, California. In the U.S., the company has developed a total of 14 wind power projects with a total rated capacity output of 2,115 megawatts (MW) and six small solar power projects with a total rated capacity of 4 MW.
In Canada, the company has developed three solar power projects with a total rated capacity of 58.7 MW. In 2011, the company acquired Saint Laurent Energies Inc., based in Montreal, Quebec, and has been chosen by Hydro-Quebec to build seven wind farms with a total of more than 1,000 MW in capacity in Quebec. These wind farms are due to be commissioned between 2012 and 2015.
Photo credit: enXco
DISCLOSURE: The writer has no positions in, or professional connections with, these companies.
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