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British Energy says takeover proposals do not offer fair value, talks continuing

British Energy says takeover proposals do not offer fair value, talks continuing

Nuclear power generator British Energy Group PLC said on Monday that takeover approaches it has received so far do not represent fair value for shareholders and that talks continue about a prospective deal.
British Energy, the largest producer of electricity in Britain with eight nuclear power stations and one coal-powered station, last month revealed it had received a range of proposals from several parties for the company.
However, it said on Monday that none of those offers is above Friday's closing share price of 735 pence (US$14.52). The stock was down 1.9 percent at 721 pence (US$14.24) on Monday.
"The board is clear that in current circumstances such proposals do not represent value for shareholders as they fail to take proper account of the current forward price of electricity and the value of the company's sites and people in the context of nuclear new build," British Energy said in a statement to the London Stock Exchange.
"The board will continue to progress the opportunities available either through an offer for the company or other partnering arrangements which maximize the value of British Energy's participation in nuclear new build," it added.
The government earlier this year gave the go-ahead for a new generation of nuclear power stations to help meet Britain's power supply needs.
British Energy, which is 36 percent owned by the government, has not named any of the potential suitors.
Analysts have suggested likely interest from Electricite de France SA, Britain's Centrica PLC, Germany's RWE AG, and Spain's Iberdrola SA.
British Energy last month posted a 28 percent fall in full-year net profit after problems at two of its plants.
The company was privatized in 1996, but a government bailout was approved in 2005 after lower power prices led the company to report it faced insolvency.
The British government last year sold a 25 percent stake, reducing its shareholding to the current level and using the 2.1 billion-pound proceeds to help fund the decommissioning of the firm's existing power plants. Decommissioning dates range between 2014 and 2035.


Updated : 2021-03-04 09:34 GMT+08:00