PARIS, Sept. 22 (UPI) -- French utility EDF, which is slated to lead Britain's nuclear renaissance, might sell part of a British energy company to reduce its massive debt.
French newspaper La Tribune reports that EDF is looking to divert another 20 percent stake in British Energy, the company EDF bought in January for a staggering $20 billion after tedious negotiations involving the French and British governments.
A sovereign wealth fund from Abu Dhabi or Morgan Stanley's infrastructure fund could be interested, the newspaper said. An EDF spokesman only halfheartedly denied the report.
Last month EDF already sold a 20 percent package to multinational energy company Centrica to reduce its debt. British Energy generates about a fifth of Britain's electricity, mainly with its eight nuclear power plants.
EDF has accumulated a debt of around $37 billion, in part to the British energy acquisition but also because of a $5 billion price tag for a 50 percent stake in U.S. nuclear company Constellation Energy.
EDF plans to offload its distribution business in Britain, which could raise as much as $5 billion, but the company will need a lot more cash for its future projects: EDF plans to shoulder a costly program involving the construction of four nuclear power plants in Britain. Each plant is expected to cost between $7 billion and $8 billion. The plan is part of a long-term British strategy to reduce the country's dependence on oil, gas and coal.
EDF is France's nuclear champion, running 58 nuclear power plants that satisfy around 80 percent of the French electricity demand. EDF is currently in negotiations with German competitor Eon about an asset swap that would hand the Germans control over French reactors and EDF stakes in German coal-fired power plants.
In Britain, the company is teaming up with Rolls-Royce to build four European Pressurized Water Reactors, with the first due to go online in 2017.
In other developments, it emerged that an ally of French President Nicolas Sarkozy could soon head EDF. Henri Proglio, currently in charge of the waste, water and transport group Veolia, is the favorite candidate to become the utility's executive chairman, French newspaper Les Echos said in its Tuesday edition. Paris holds an 82 percent stake in EDF.
