EDF investors ‘agree €4bn share sale’ ahead of Hinkley decision

Shareholders at French-controlled firm EDF have reportedly approved plans to sell shares to raise €4 billion (£3.3bn).

Reports claim the fundraising will contribute towards the Hinkley nuclear project in Somerset.

The news comes before the energy giant’s board meeting tomorrow when it is expected to make a final investment decision on the project.

The French state, which owns 85% of EDF, is to buy €3 billion (£2.5bn) worth of new shares in the fundraising, reports claim.

The Hinkley Point C project is expected to cost £18 billion and will receive a £2 billion of initial investment from the UK Government and £6 billion from China.

Earlier this month, the former Department for Energy and Climate Change revealed the estimated cost of the nuclear project over its lifetime could reach £37 billion.

EDF Chief Executive Jean-Bernard Levy reportedly said during a board meeting on Tuesday: “The share sale will improve the financial strength of the company and allow it to renew its debt under good conditions.”

Last week, French authorities raided energy company EDF’s headquarters in France