French state utility EDF is in talks with banks about a potential initial public offering of its Italian subsidiary Edison, according to sources cited by Reuters, in a move that could unlock billions in capital as EDF ramps up financing for its nuclear revival at home.
EDF has begun sounding out major European lenders including BNP Paribas and Société Générale to assess investor appetite for a Milan listing that would value Edison between €7 billion and €10 billion ($8-11 billion). The group would likely retain a controlling stake while selling a minority portion to the public or strategic investors, according to the Reuters report. Sources told the news agency that the discussions remain preliminary, with a formal mandate expected by the end of October.
Edison, which was fully acquired by EDF in 2012, remains one of Italy’s largest integrated energy companies, operating power generation, retail, and gas units with annual revenue of about €15 billion and EBITDA near €1.7 billion. Its CEO, Nicola Monti, said in September that the company was prepared for a market return if EDF gave it the green light, according to Reuters.
The IPO would fit EDF’s broader capital rotation strategy.
Since being fully renationalized in 2023, EDF has been under pressure from President Emmanuel Macron’s government to finance up to six new EPR2 reactors and extend the life of the existing fleet. That program could require more than €60 billion through the 2030s, prompting asset reviews that include potential divestments in renewables and non-core foreign units, the Financial Times reported.
Bloomberg reported in early September that an Edison relisting could gauge investor appetite for European power assets, as utilities face volatile wholesale electricity prices across the continent.
Edison’s partial flotation would be similar to moves by other European energy peers such as Eni and Iberdrola, which spun off renewables and downstream assets to attract capital while retaining strategic control. A Milan listing would also test investor confidence in Europe’s liberalized power markets at a time of rising grid costs and renewed nuclear investment.
By Charles Kennedy for Oilprice.com
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