State takeover of EDF resumes after appeal dismissed

EDF's board of directors on 27 October last year approved an offer by the French state to renationalise the company by increasing its shareholding in EDF from 84% to 100% in a deal worth almost EUR10 billion (USD11 billion).

The following month, the AMF approved the simplified public tender offer filed by the French state for the equity securities of EDF, with an offer price of EUR12.00 per EDF share and EUR15.52 per OCEANE (existing shares not already held by the French state). The offer was open from 24 November to 22 December inclusive.

A group of minority shareholders took the case to the Paris Court of Appeal arguing that the price offered to EDF shareholders was too low. The employee shareholding fund Actions EDF and the non-profit organisations Energie En Actions and Association pour la Défense des Actionnaires Minoritaires are seeking the annulment of the clearance decision on the offer.

The AMF announced in late-January that the simplified public tender offer will be closed on 3 February, pending the decision of the Paris Court of Appeal.

The Court has now dismissed the claim, confirming the validity of the offer with regard to the applicable legislative and regulatory provisions.

The AMF said that, in accordance with the French State's undertakings, the offer will be "reopened for a period of 10 trading days from 4 May 2023 to 17 May 2023 included".

"Following this period, the French State will request the implementation of a squeeze-out procedure for EDF shares and OCEANEs, since the legal and regulatory conditions for such implementation will be met," EDF said.