The EUR0.84-per-share ($1.09) price agreed to in a deal that
will raise Electricite de France SA's stake
in Edison SpA 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.