EDF: EDF and AREVA sign binding agreements for the sale of AREVA NP's activities
November 16 2016 - 2:45AM
PRESS
RELEASE
EDF and AREVA sign
binding agreements for the sale of AREVA NP's activities
Paris - November 16th, 2016
Following the memorandum of
understanding signed on 28 July 2016, AREVA and EDF signed on 15
November the contract setting the terms of the sale of an interest
conferring exclusive control by EDF of an entity ("NEW NP"), a 100%
subsidiary of AREVA NP, that will combine AREVA Group's activities
relating to design and equipments' manufacturing of nuclear reactor
and, fuel design and assemblies manufacturing and services to the
nuclear installed base.
The contracts for the EPR
Olkiluoto 3 project and the resources required to complete the
project, as well as certain contracts relating to components forged
in Le Creusot plant, will stay within AREVA NP, in AREVA SA's
scope.
Contractual obligations related to
the discovery of anomalies in the quality inspection of equipment
manufactured at the Le Creusot plant, and, if need be, the Saint
Marcel and Jeumont plants, will remain guaranteed by AREVA SA.
The sale price for 100% of the
equity value of NEW NP is confirmed at 2.5 billion euros, excluding
the potential price complements and adjustments and with no
transfer of financial debt at the closing date. This price
corresponds to a 2017 forecasted EBITDA multiple of 8x[1].
With the information-consultation of the employee representative
bodies now completed, the transaction - expected to be concluded
over the second half of 2017 - remains subject to:
-
obtaining favourable conclusions from the ASN
regarding the outcome of the tests on the primary circuit of the
Flamanville 3 reactor;
-
completion and satisfactory conclusions of the
quality audits at the Creusot, Saint-Marcel and Jeumont
plants;
-
approval from the relevant merger control
authorities.
Discussions with those strategic
investors that have expressed interest in taking a stake of NEW
NP's equity capital, alongside EDF, will start in the coming weeks.
The stake acquired by EDF, up to 75% as per the terms of the
contract signed today, would thus be reduced to a target stake of
at least 51%, securing EDF's exclusive control, Areva - Newco's
stake would then be 15% and the balance being held by the minority
partners.
Jean-Bernard
Lévy, EDF Group's Chairman and Chief Executive Officer, said:
"Today, we take a major step forward in the
refounding of the French nuclear industry. With EDF as a leader of
the French nuclear sector, this transaction will enable our
industry to be more efficient in carrying out major projects such
as the 'Grand Carénage' of the French fleet and the construction of
new nuclear plants. We will thus be stronger and more competitive
to conquer new international markets."
Philippe KNOCHE, AREVA Group's
Chief Executive Officer, said : "We are
delighted with these agreements which give AREVA NP activities a
long term vision of a strategic share structure conducive to their
development. This signature marks an important stage in the
refocusing of AREVA on fuel cycle activities, our core business.
The conclusion of these agreements strengthen our resolve to
continue to implement our action plan."
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CONTACTS :
EDF
Press: +33 (0) 1 40 42 46 37
Analysts and investors: +33 (0) 1 40 42 40 38
AREVA
Press Office:
Tel: +33 1 34 96 12 15
press@areva.com
Investors Relations:
Manuel Lachaux
manuel.lachaux@areva.com
T : +33 (0)1 34 96 11 53
Anne-Sophie
Jugean
anne-sophie.jugean@areva.com
T : +33 (0)1 34 96 62 41
About
EDF
A key player in energy transition, the EDF Group is an integrated
electricity company, active in all areas of the business:
generation, transmission, distribution, energy supply and trading,
energy services. A global leader in low-carbon energies, the Group
has developed a diversified generation mix based on nuclear power,
hydropower, new renewable energies and thermal energy. The Group is
involved in supplying energy and services to approximately 37.6
million customers, of which 27.8 million in France. The Group
generated consolidated sales of €75 billion in 2015, of which 47.2%
outside of France. EDF is listed on the Paris Stock Exchange.
About
AREVA
AREVA supplies high added-value products and services to support
the operation of the global nuclear fleet. The company is present
throughout the entire nuclear cycle, from uranium mining to used
fuel recycling, including nuclear reactor design and operating
services. AREVA is recognized by utilities around the world for its
expertise, its skills in cutting-edge technologies and its
dedication to the highest level of safety. AREVA's 40,000 employees
are helping build tomorrow's energy model: supplying ever safer,
cleaner and more economical energy to the greatest number of
people. Tour AREVA - 1 Place Jean Millier - 92400 COURBEVOIE -
France - Tél : +33 34 96 00 00 - Fax: +33 (0)1 34 96 00 01
[1] Normalised
EBITDA pro forma of the acquired scope, excluding large
projects
PR EDF AREVA
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information contained therein.
Source: EDF via Globenewswire