The Board of Directors of French energy utility EDF has agreed on the final valuation of the activities of Areva to be acquired by EDF, which comes to €2.5bn for 100% of AREVA NP’s equity (on a debt-free, cash-free basis, i.e. not including Olkiluoto-3 in Finland).
This amount is likely to be adjusted, firstly, upward or downward depending on the financial statements prepared on the date of completion of the transaction, and secondly, with a possible price earn-out of up to €350m subject to the achievement of certain performance objectives measured after the closing date. The arrangements to completely immunise EDF against the costs and risks of the OL3 project and all the final contractual documentation remain to be finalised.
Debt-laden Areva plans to carry out a €5bn capital increase, to sell its Areva TA activity and to sell its Canberra business to restore its financial situation.