Kuwait takes Areva stake
Kuwait and France are to buy into Areva to the value of €900 million in a move to help the nuclear group "pursue its development plan" with increased capital.Kuwait and France are to buy into Areva to the value of €900 million in a move to help the nuclear group "pursue its development plan" with increased capital.
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| Areva's headquarters in Paris' La Defence |
Some €600 million ($800 million) of the investment comes from the Kuwait Investment Authority (KIA), acting on behalf of the Gulf state. The remaining €300 million is from the French state, and will temporarily take the nation's holding in Areva from 8.39% to 10.2% ahead of its intended introduction of the new shares to ordinary trading in 2011.
The deal would involve a stock split to the ratio of 1:10, which Areva will have to propose to its existing shareholders. The company said the transactions "will enable the group to strengthen its equity and pursue its development plan with a reinforced capital structure."
Following the stock split, KIA and the French state will pay €32.5 per share to the values of their investments. The deal includes a shareholders agreement between France and KIA "providing in particular for the stability of KIA's stake in Areva for 18 months." KIA will not have a seat on the Areva supervisory board, noted an announcement, while France will "make its best effort" to introduce the shares it has bought to ordinary trading in the first half of 2011.
Areva takes part in almost the full scope of nuclear power activities, from uranium mining through power technology to waste management.
Researched and written
by World Nuclear News
