France welcomes approval of nuclear firms’ recapitalization
Nuclear industry – State confirms its commitments on Areva’s recapitalization – Communiqué issued by the Ministry of the Economy and Finance (excerpts)
Paris, 3 February 2017
The state welcomes the authorizations given today by the general meetings of Areva S.A. and NewCo [shareholders] to increase the capital of those companies. As soon as the two preconditions in the European Commission’s decision on 10 January are met, the state will subscribe to these reserved capital increases: €2 billion for Areva S.A. and €2.5 billion for NewCo. To cover Areva’s liquidity needs over the coming months, the state has signed agreements to make advance payments to the current account for a total sum of €3.3 billion (€2 billion for Areva S.A. and €1.3 billion for NewCo), which will be converted into capital when the capital increases are made.
The state also welcomes the agreement reached with MHI [Mitsubishi Heavy Industries] and JNFL [Japan Nuclear Fuel Limited] on the principles of their entry into NewCo’s capital. This agreement with two internationally renowned Japanese manufacturers, partners of Areva, confirms the growth and profitability prospects of NewCo’s activities, focusing on the fuel cycle. Pending the completion of negotiations on documentation, MHI and JNFL will subscribe to the tune of €500 million, and under the same conditions as the state, to a reserved capital increase which will take place as soon as the majority control of New Areva NP is transferred to EDF. (…)./.