France’s troubled nuclear energy company Areva SA on Friday announced that two Japanese companies would take equity stakes as part of its restructuring, as investors approved a state bailout.
Shareholders almost unanimously approved a capital increase that would see the French state inject 2 billion euros (US$2.16 billion) into parent company Areva.
The French government is already the majority owner of the company which has faced severe difficulties since the 2011 Fukushima Dai-ichi meltdown in Japan called nuclear power into question across the world.
The restructuring, approved by EU regulators last month, would also see the French state inject 2.5 billion euros into the NewCo unit into which Areva’s nuclear fuel mining, enrichment and reprocessing activities are to be placed.
Japan Nuclear Fuel Ltd and Mitsubishi Heavy Industries are to each invest 500 million euros and take a 5 percent stake in NewCo once the French state’s investment is completed, Areva said.
A separate shareholders’ meeting approved those investments.
Areva has previously worked with both companies in fuel treatment.
Areva said in a statement that “the capital of NewCo remains open to other strategic investors for investment within the same framework as the agreements currently being finalised.”
That could be construed as a signal to China National Nuclear Corp (中國核工企業集團), with which talks have hit a snag over conditions set by the Chinese state-owned company, in particular having a representative on the board of directors.
Power firm Electricite de France SA, also majority-owned by the French state, is to purchase a majority of Areva’s reactor unit.
Delays in the construction of Areva’s new generation of nuclear reactors in Finland and France, as well as a disastrous 2007 purchase of a Canadian uranium mining firm helped sink the company’s finances.
Shares in the company, which debuted at 30.16 euros when it listed in 2011, have since tumbled and closed at 4.55 euros on Friday.
Areva plans to launch a buyout offer and delist the company after the recapitalization.
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