PARIS, FRANCE: EDF Group, a French multinational electrical utility firm largely owned by the French state, introduced the launch of a share capital increase with preferential subscription rights to existing shareholders, for a gross quantity of greater than 3.1 billion euros.
The net proceeds from the Rights Issue will primarily be used to finance the Group’s development operations throughout the interval between 2022 and 2024, in line with the CAP 2030 strategy; to strengthen the Group’s credit score standing and its entry to financing markets; and extra generally, to strengthen the Group’s monetary flexibility.
The Rights Issue is a half of a broader motion plan aimed at strengthening the balance sheet structure.
The Rights Issue will be carried out with shareholders’ preferential subscription rights, in accordance with the twenty second decision of the mixed shareholders’ assembly of seven May 2020, and can result within the issuance of 498,257,960 new shares.
Each holder of EDF’s shares recorded on the finish of the accounting day on 18 March 2022 will obtain one (1) Right per share. Rights will be indifferent on 21 March 2022, and existing shares will therefore commerce ex-right from 21 March 2022.
The subscription of the New Shares will be reserved, as a preference, to the holders of the Rights, thirteen Rights will entitle holders to subscribe for two New Shares on an irreducible foundation (à titre irréductible).
Based on the closing price of the EDF share on the regulated market of Euronext in Paris (“Euronext Paris”) on sixteen March 2022 (8.864 euros), the theoretical worth of the Right, which can fluctuate throughout the Rights buying and selling interval relying on EDF’s ex-right share price, is 0.34 euro, and the theoretical worth of the ex-right share is 8.53 euros.
The subscription price for the New Shares has been set at 6.35 euros per share (nominal worth of 0.50 euro and issue premium of 5.85 euros). The subscription price represents a reduction of 25.5% on the theoretical worth of the EDF’s ex-right share and 28.4% on the closing price of EDF’s share on Euronext Paris (8.864 euros) on sixteen March 2022.
The Rights Issue will be open to the general public in France only.
EDF group is an built-in energy company, active in all businesses: generation, transmission, distribution, energy trading, energy gross sales and energy services. EDF Group is a world chief in low-carbon energy, having developed a various manufacturing combine based primarily on nuclear and renewable energies (including hydropower). It is additionally investing in new applied sciences to support energy transition.
EDF is listed on the Paris Stock Exchange. www.edf.fr