France’s AREVA said Tuesday it has begun transferring nuclear fuel cycle activities to its newly formed NewCo, part of a mass restructuring intended to raise at least 5 billion euros for the company through government investment and asset sales.
The company has drawn up a draft partial transfer agreement “providing for a remuneration of the contribution calculated on the basis of an actual value of transferred assets and liabilities in the order of 1.4 billion euros,” according to Tuesday’s announcement. The formation of NewCo is expected to be complete in 2017.
The company’s bondholders are expected to meet on Sept. 19 to approve the proposed partial transfer of assets from AREVA SA to NewCo and the simultaneous transfer of bond debt to the new spinoff entity, the company said. AREVA SA has scheduled its extraordinary general meeting for Nov. 3, where the company is expected to approve the draft partial transfer agreement.
As announced in June, the French state is expected to control up to 67 percent of NewCo, directly and indirectly, while the remaining third is offered for private investment. The restructuring involves capital increases of 5 billion euros for AREVA SA (2 billion) and NewCo (3 billion), with the French state offering to act as lead shareholder.
CEO Philippe Knoche signaled in June that AREVA wants to become “a profitable and competitive player,” starting with consolidation of company fundamentals. NewCo is envisioned as a “a new, more profitable, less risky company focused on fuel cycle operations,” according to AREVA.
NewCo will primarily focus on mining and the front end and back end of the fuel cycle, according to the company. AREVA will maintain ownership of four entities up for sale: AREVA NP, AREVA TA propulsion and research reactors, Canberra nuclear measurements, and AREVA’s renewable energy segment. AREVA also will maintain its contract for construction of the Olkiluoto Nuclear Power Plant Unit 3 in Finland.
