Areva board meets to review KIA investment
Paris, December 11, 2010
Areva's supervisory board met on Saturday to review the terms of a long-awaited fundraising, a day after France and Kuwait agreed to inject 900 million euros ($1.19 billion) into the French nuclear group.
The meeting started at 0900 GMT at Areva's headquarters in central Paris and was likely to rubber-stamp proposals announced by French Economy Minister Christine Lagarde in a statement on Friday.
Areva's board meeting comes after months of talks plagued by political and industrial setbacks about the funding of the company's 12 billion euro investment needs.
Friday's announcement laid out what is expected to be the first phase of a capital increase, which Areva hopes will raise some three billion euros in total to fund its expansion and research and development into a new generation of nuclear power plants. A second phase could come within three to six months.
On Friday, Lagarde said Kuwait's sovereign wealth fund KIA (Kuwait Investment Authority) will take a 600 million euro stake in Areva, or 4.8 percent, as part of a capital increase that will also see the French state invest 300 million euros.
Lagarde also set a target of June next year for a full stock market listing of Areva.
The French state owns just over 90 percent of the company, which trades on the Paris bourse in the form of investment certificates representing 4.03 percent of its capital.
Areva's investment certificates were suspended from trading on Friday morning after the company announced its board meeting.-Reuters