EDF supported by the spculation of a split

Up 3.12% 12.39 euros, EDF signs the largest increase in the SBF 120, supported by speculation on its next reorganization. The public electrician met last night its strategic committee. On the agenda: the "rescue" of a group caught between a colossal debt and massive program investments. Hurry up. Emmanuel Macron left until the end of the year to the CEO, Jean-Bernard Lvy, to formalize a plan called "Hercules".

This is one of the reasons that has led the Elyse to renew the leader of his post, a first since 1987.

According to Ouest France, Jean-Bernard Lvy is following the path proposed by the President of the Republic, namely the nationalization of nuclear activities and the gradual privatization of another structure that would include activities in renewable energies, services, the supply of electricity and energy. electricity to individuals, and distribution (Enedis). The historic EDF, called "blue house" would, initially, between 65% and 70% of this new entity.

A milestone will be presented on June 7 senior executives of EDF and June 20 to the unions, said the daily.

The proposed cutting of EDF envisaged by Emmanuel Macron seduces the investors and that is understandable. The nuclear branch, strategic for the country, is confronted with expensive chances.

The upgrading of the power stations and the post-Fukushima adjustment will cost between 55 and 75 billion euros, or about 5 billion euros a year, a good sum while the group's net debt amounts to 37 billion euros. euros.

In a note published this morning, UBS recalls that this scenario is broadly in line with the one it had set up at the end of 2017. For the broker, this split will bring value to shareholders who would become owners of a low-debt group with more visible prospects. and more efficient operationally.

In this context, the consulting firm has confirmed its purchase recommendation and its target price of 15.5 euros on EDF.