# EDF’s minority shareholders scramble to challenge nationalisation price Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-23 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: French energy group EDF faces nationalisation challenge Meta Description: EDF minority shareholders push back on French government's nationalisation price for the energy group, citing insufficient compensation offers. URL: https://financedigest.com/edfs-minority-shareholders-scramble-to-challenge-nationalisation-pricehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-23t131305z2lynxmpei7m0fvrtroptp4edf-results-1736815394687-compressed.jpg) By Julien Ponthus PARIS (Reuters) – Minority shareholders in EDF are accelerating their efforts to challenge the price set for the nationalisation of the French energy group, believing the government could lodge its takeover offer with the market regulator imminently. The French government, which already holds 84% of EDF shares, announced in July it would nationalise the utility, a move which will give it more control over a revamp of the debt-laden group while contending with a European energy crisis. The government offered a premium of more than 50% from the days preceding the announcement, but minority shareholders [say it is not enough](https://www.financedigest.com/ecb-must-swiftly-normalise-rates-neutral-may-not-be-enough-knot-says.html "ECB must swiftly normalise rates; neutral may not be enough, Knot says"). Minority [shareholder group](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley") ADAM sent a letter to EDF’s Chief Executive Jean-Bernard Levy on Aug. 18, urging a more aggressive approach to the utility’s demand for 8.3 billion euros ($8.24 billion) in compensation after the government capped electricity retail [prices in January](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc.html "UK shop price inflation hits record 8% in January: BRC"). [EDF has already filed](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management") an indemnification claim. However, ADAM believes only going to [court before the takeover](https://www.financedigest.com/australian-court-approves-bhps-6-4-billion-oz-minerals-takeover.html "Australian court approves BHP’s .4 billion OZ Minerals takeover") offer is lodged would influence the AMF financial market regulator’s thinking when it rules on the buyout. This is the week when everything happens”, said ADAM’s head Colette Neuville, who argues EDF investors have unfairly been [asked to pay](https://www.financedigest.com/7-questions-to-ask-before-paying-off-your-mortgage-early.html "7 Questions to Ask Before Paying Off Your Mortgage Early") the bill when the government decided to shield consumers from skyrocketing energy prices. A source close to EDF said going to [court now would not alter how the AMF viewed the nationalisation bid](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source"), adding that the company planned to do so if its compensation claim was rejected. EDF declined to comment on Neuville’s request. The AMF said it could not comment on specific cases. Separately, an association of EDF employee shareholders told Reuters it was stepping up efforts to sue the French state for putting EDF’s [financial health](https://www.financedigest.com/how-can-fintechs-better-engage-zillennials-with-their-financial-health-the-answer-lies-in-speaking-to-them-in-their-own-language.html "How can fintechs better engage Zillennials with their financial health? The answer lies in speaking to them in their own language") in jeopardy. We’re working on our objective to lodge our [complaint before the state files](https://www.financedigest.com/french-environmentalists-file-complaint-against-apple-for-wasteful-practices.html "French environmentalists file complaint against Apple for wasteful practices") its bid,” said Herve Chefdeville, general secretary of the Energie en actions association. French lawmakers earlier this month approved the 9.7 [billion euros in financing required for the buyout deal at a 12 euros per share](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") price tag. EDF [shares have been trading between 11.8 euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025") and 11.9 euros for the past month. The [price indicates that merger arbitrage funds currently don’t expect the offer](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices") to be sweetened. EDF floated in 2005 at a [price of 32 euros](https://www.financedigest.com/euro-zone-inflation-eases-in-feb-but-core-prices-pick-up.html "Euro zone inflation eases in Feb but core prices pick up") per share. The government has previously said it [plans to launch the nationalisation process in early](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") September. The [group holds more than 40 billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") of debt. Rising [prices have squeezed energy suppliers across Europe](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel"), with Uniper, Germany’s biggest importer of Russian gas, requiring a 15 billion-euro state bailout. ($1 = 1.0076 euros) (Julien Ponthus with Leigh Thomas; Editing by Richard Lough and Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---