The executive will know this Tuesday if he should review his copy about the renationalization of EDF. Justice will render its decision in the battle which has pitted small shareholders against the French State for months, in particular because of the share buyback price deemed too low.
During the hearing before the Paris Court of Appeal on March 23, the public prosecutor’s office had requested the rejection of the appeal filed by the rebellious small shareholders of the energy giant. The latter challenge the compliance decision issued by the Financial Markets Authority (AMF) in November, which had given the green light to the State to launch this takeover bid (takeover bid).
Renationalization to relaunch nuclear power
The complete takeover, announced last July and costing 9.7 billion euros, is strategic for the state shareholder, which already held 84% of the national electric flagship before the takeover. Its goal: to free EDF from the stock market to allow it to relaunch nuclear energy more quickly by financing the renewal of an aging fleet, at a time when Russian gas is lacking.
The government wanted to complete everything by the end of 2022. But for months, small employee and retired shareholders of EDF have multiplied their appeals. Main bone of contention, the price of 12 euros per share at which the State has decided to buy back from the shareholders the titles which it lacks to fully control the electrician. A price deemed too low: the complainants claim a minimum of 15 euros. At the opening of the capital in 2005, the action had been sold for 32 euros, with a 20% discount for employees at 25.60 euros.
This price of 12 euros, on the other hand, has been validated by the report of an independent expert, but the small shareholders believe that the company is undervalued and that it has been unfairly penalized in its revenue by a mechanism imposed by the State. (Arenh), forcing it to sell its nuclear electricity at low prices to manufacturers and alternative suppliers. EDF also had to juggle its corrosion problems in the reactors which caused its production to fall in 2022 and widened its financial losses.
The State lacks less than 5% of the titles
However, a certain number of shareholders accepted the price proposed by the State. On February 8, the latter thus held “at the provisional closing of the offer” 95.82% of the capital and 96.53% of the voting rights.
If the judgment which will be delivered on Tuesday confirms that the takeover bid is in conformity, the State will be able to finish renationalising. Otherwise, if the compliance decision issued in November by the AMF is canceled by the judges, the shareholders who have already tendered their shares will be able to recover them. If the State then wants to revise its offer upwards, it will pay an additional price to those who have not requested the return of their shares.