HomeWorld RegionsEuropeEDF to sell RTE in order to bankroll Hinkley

EDF to sell RTE in order to bankroll Hinkley

EDF is examining the prospect of selling off one of its prize assets in order to help pay for the construction of Hinkley Point C nuclear power plant in the UK.

According to reports in Le Figaro newspaper over the weekend, EDF is looking for a buyer of a 50 per cent stake in RTE, Europe‘s biggest high-voltage electricity transmission grid.
Although RTE is run as an entirely separate entity – due to EU rules that prevent utility companies controlling the electricity networks – the plan would be to create a holding company which would either be held directly by EDF or state bank Caisse des Depots.

EDF will hold an EGM on 26 July to obtain clearance for a EUR4bn ($4.6bn) share issue. As an 85 per cent shareholder the French government would provide over EUR3bn. The cash is to be used alongside proceeds for non-core sales to fund projects such as Hinkley Point.