The EUR0.84-per-share ($1.09) price agreed to in a deal that
will raise Electricite de France SA's (EDF.FR) stake in Edison SpA
(EDN.MI) to 80.7% has been agreed between EDF and the Italian
investors and is in line with the average stock market price over
the past 12 months, the companies involved in the deal said late
Thursday.
In a joint filing to the Italian stock exchange, the companies
said that EDF will pay some EUR700 million to increase its holding
in Edison to nearly 81% from its current 50%.
The statement comes in response to the request by Italian stock
market regulator Consob for clarification on several aspects of the
agreement reached Tuesday over Edison. The first regarded the
criteria EDF and Edison used to set the price of the deal.
On Tuesday, EDF and municipal utility A2A SpA (A2A.MI) announced
preliminary plans for the French company to increase its stake as
part of the long-awaited takeover of the EUR4.4 billion company.
A2A-controlled holding company, Delmi, would garner a 70% stake in
local power generator Edipower, in which Edison has a 50% stake,
and which owns nine electricity plants in Italy.
Consob's second point concerned the timing for EDF to resubmit
the paperwork to Consob asking it for an opinion on the price of
the upcoming bid to buy Edison's minority shareholders. EDF, which
has to resubmit its request since Tuesday's agreement differs from
the one reached earlier this fall, said it will send its new query
to Consob in January.
Another point Consob was seeking clarification on concerned the
agreement for Edison to supply natural gas to Edipower in a
six-year contract.
"It is specified that the understanding reached is preliminary,
is in the interests of both companies and does not yet provide for
specific terms other than those disclosed to the market," the
statement said.
The companies added that in reference to the transfer of 70% of
Edipower's share capital "such price has been determined on the
basis of negotiation which took into account the highest value in
the valuation range for 20% of Edipower's share capital set forth
in the preliminary purchase contract agreed between Edf and
Alpiq."
It added that in reference with the 50% of Edipower, in the
negotiations the purchase accepted to pay an additional EUR100
million and therefore the price to be paid to Edison by Delmi will
amount to approximately EUR600 million.
As for the transfer of 20% of Edipower's share capital currently
held by Alpiq, Edf confirms that the exclusivity between Edf and
Alpiq under their previously announced preliminary agreement has
been extended until Jan. 31 and EDF is working on modalities so
that Alpiq's stake in Edipower be sold to Delmi for EUR200
million.
Exchange website: www.borsaitaliana.it
-By Enza Tedesco, Dow Jones Newswires,
enza.tedesco@dowjones.com
