Utility EDF Energies Nouvelles launched a €500-million ($725.9 million) rights issue to finance its expansion into solar energy at a price of €32.20 per new share.
The rights issue represents a discount of 28% to the company's closing stock market price of €44.68 on Wednesday. Shareholders will be able to subscribe for 1 new share for every 4 existing.
“This capital increase will allow EDF Energies Nouvelles to step up the pace of growth in photovoltaic solar generation, which represents the group's second key development priority.” EDF EN Chairman Paris Mouratoglou said in a statement.
EDF Energies Nouvelles is a 50% owned subsidiary of the EDF Group, France's main electricity provider. The company's main shareholders have committed to subscribe to the capital increase, EDF EN said.
Investment banks Goldman Sachs and Societe Generale are managing the rights issue. (Reuters)