>>> Centrica’s 20% stake in UK nuclear plants attracts interest from Greencoat C

Centrica’s 20% stake in UK nuclear plants attracts interest from Greencoat Capital; Dalmore Capital and Equitix team up for bid - report
21 MAY 2019
Centrica’s [LON:CNA] 20% stake in eight nuclear energy plants in the UK has attracted interest from the fund managers Greencoat Capital, Dalmore Capital and Equitix, according to a report in The Times. Dalmore and Equitix are working on a joint offer for the stake, the item said, without citing a source for the information.
The Dalmore/Equitix consortium and Greencoat are thought to be the leading bidders for the stake, the item said. A Daily Telegraphreport on 8 April said Greencoat was preparing an offer for a stake in seven nuclear facilities owned by EDF Energy and Centrica.
Electricite de France [EPA:EDF] owns an 80% stake in the reactors via its UK subsidiary EDF Energy, while Centrica owns 20%. Centrica put its stake up for sale in February 2018, the item said, noting estimates that said the stake could sell for GBP 1bn (EUR 1.14bn).
In addition to the sale of Centrica’s 20% stake, EDF may also sell a further 29% stake in the nuclear plants, The Times report said. The total 49% shareholding could be valued at up to GBP 4bn (EUR 4.56bn), according to the report.
Centrica has indicated that it wants to sell its stake by the end of next year, the article said. EDF said in 2018 that it was looking at options but remained committed to holding a majority stake, the item added.
The auction of Centrica’s stake had attracted initial interest from China-based nuclear power companies. However, that interest is believed to have waned due to political opposition, the item said.
The article quoted Centrica’s chief executive Iain Conn, who said last week that the portfolio of reactors are “very ageing”. Two of the plants, Hunterson B and Dungeness B, are not currently operating, the item noted.
Conn added that the planned disposal was on track. However, City sources cited by the report said the plant shutdowns will probably push back any deal until near the end of this year.
Dalmore and Greencoat both refused to comment, while Equitix could not be contacted for comment, the report said.