EDF faces shake-up

• 9 years ago (2014-10-17)
• Junior Isles

Europe 1061 Nuclear 640

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French state-owned utility Eléctricité de France (EDF) is facing a major shake-up. According to Dow Jones newswire, the French government is likely to sell shares in as part of a broader objective to raise several billion euros of the French state’s asset portfolio in the coming year and a half.

Quoting someone familiar with the matter, the newswire reported: “That’s where the biggest value is. Certainly it would have to be among the stakes to be sold down.”

It remains to be decided when or how much the government would sell shares in the state-controlled energy giant, or whether France would sell shares on the open market or in a private placement, said the report. “Everything’s on the table,” the source said.

It is unlikely that the government would act soon, however, given the global pullback in stock markets including in Paris, said the report.

After months of speculation, the French government confirmed it is to replace Henri Proglio as EDF’s Chief Executive.

The socialist government, led by François Hollande, praised Proglio but said the change at EDF was driven by a “new framework” created by the government’s decision to reduce France’s dependence on nuclear power and increase renewable energy generation.

Emmanuel Macron, economy minister, however, said the government had “no intention” of privatising EDF.