For the markets there is a winner and a loser

For the markets, there is a winner and a loser. Yesterday, after the announcement of the sale by 20 in British Energy (BE) to Centrica EDF, the course of the British electrician won 6, while that of the French retreated of 5.6. Under the terms of the transaction, Centrica will acquire 20 of the capital of the British nuclear leader for the equivalent of 2.3 billion (EUR 2.5 billion) pounds through payment in cash of $ 1.1 billion of pounds and the transfer of its 51 stake in the Belgian energy EPS group, assessed at 1.2 billion pounds.

When he announced in September its acquisition of British Energy, for 12.5 billion, EDF had referred to a scheme in which Centrica resume a quarter of the capital to BE 3.1 billion. Finally, he takes a fifth for 2.3 billion, which corresponds to a discount of 6. For Pierre Gadonneix, the CEO of EDF, "very modest" gap is justified by the fact that his partner will "minority". Centrica may however appoint two directors in their common structure and will have "special rights".

Analysts criticize the valuation given by EDF to SPE. In assessing the participation of 51 in the number two 1.3 billion EUR Belgian, the French electrician pays 14 times the operational result expected this year by SPE, a very high ratio, according to an analyst who wants to remain anonymous. EDF prefers to refer to a multiple of 11 times operating income of 2010, which he justified by a raise of majority. By comparison, the purchase of Dutch Essent by RWE announced in January is made on the basis of 9.6 times the operational result of 2009. Clearly, do not have to too dismantle its 20 be, EDF would have agreed to overpay EPS.

"We are far from the account," said Patrice Lambert de Diesbach, analyst at CM - CIC. If EDF had not limited facial price decline of BE, the electrician would of depreciate massively its value in its accounts. An adjustment which would have been "extremely damaging", according to Patrice Lambert de Diesbach. It is a secret, according to another analyst: Pierre Gadonneix bought its target at the top of the cycle and it is now worth less. But the two partners had to find an agreement, not only for political reasons, and the shareholders of Centrica threatened to give their agreement to a too expensive operation...

25 billion euros of debt

"It is difficult to get an idea quickly, because operation has a rather complex structure," said a banker. It provides for the acquisition of EPS, the transfer of shares in British Energy, the creation of a common for new nuclear society and rights of removal of electricity. Once the transaction is complete, Centrica will have 20 of the energy produced by British Energy and, from 2011, it will benefit from additional drawing rights.

On the merits, EDF and Centrica is needed as the nuclear revival spearheaded revel. For the French group, this operation will allow first and foremost to serve its 5 million British customers, like Centrica, which the British Gas industry gas, but lack of electricity. The two groups, which could invite other partners in their projects, have plans to build four new EPR nuclear reactors. They want to implement a first end 2017.

At the price of the EPR, estimated by Pierre Gadonneix between 4 and 5 billion euros exhibit, the note looks salt. As the debt of the Group has already jumped 50 last year, to EUR 25 billion. The Group wants to debt of at least 5 billion by end of 2010. He originally hoped to recover more of cash of its transaction with Centrica. At present, he is considering partial assignment of the network of French transport TENs, or even the sale of the British distribution system. Operations complicated by the fact that they are involved in a context where the vendors seem to outnumber buyers. At them three, EDF, E.ON and Enel want to assign to EUR 25 billion between 2009 and 2010...