15 Jun (NucNet): Areva SA, France’s state-controlled nuclear energy company, has announced restructuring plans which will see it split into three smaller companies and raise about €8bn (about $9bn) in additional capital. The company, which has made losses for the last five years, will also sell its non-core businesses to raise some of the cash. The announcement was made by chief executive officer Philippe Knoche during a conference call held to give details of the company’s roadmap for the next five years. Areva said a new entity, temporarily named New Co, will be created to handle the business of nuclear fuel for power plants, which includes mining, conversion and enrichment operations, as well as the processes of recycling, logistics and dismantling. “By means of the solutions it can provide for uranium supply, for its conversion into fuel, and for nuclear fuel recycling, waste management and dismantling, New Co will be in a good position to grow in global nuclear markets. The strengthened capital structure, the new industrial plants, and the reinforcement of New Co’s technology and innovation base will underpin this strategy,” Mr Knoche said. New Co, which will take on part of Areva’s debts along with its assets, will also be in a position to raise capital from the markets in the medium term, by 2019 or 2020, since it “will be an attractive company that will raise interest from new investors,” he added. Areva will transfer relevant assets to New Co and will itself remain a holding company. It will also sell some of its assets and operations, such as the reactor manufacturing unit – to be bought by state-controlled power utility EDF – to raise about €2.9bn. The French government, which owns over 85 percent of Areva, will allocate another €5bn to increase the capital for both Areva and New Co, subject to approvals from the European Commission. Some of the money would be used for repaying debts. Areva’s roadmap is online: http://bit.ly/1YrrcXn
