The French State is providing new funds to the uranium specialist Orano, fully subscribing a capital increase of 300 million euros in the context of the reactivation of French nuclear energy, Orano and the Ministry of Economy announced on Thursday.
This capital increase, for a total amount of 299,999,952 euros, through the creation and issue of 9,146,340 new ordinary shares of 0.50 euros of nominal value each and an issue premium of 32.30 euros per share, “was fully subscribed and released for cash payment by the French State,” Orano detailed in a press release.
This operation increases the State’s participation in the capital “up to 90.33%.” Japanese shareholders Japan Nuclear Fuel Limited and Mitsubishi Heavy Industries Ltd, who each owned 5% of the capital, saw their stake increase to 4.83% each.
“This operation demonstrates the will of the shareholder State to contribute to the execution of Orano’s strategic plan and its development,” declared Orano.
“This investment by the State (…) confirms France’s will to strengthen and diversify its nuclear sector to guarantee our fellow citizens and our partners sovereign, sustainable and carbon-free energy,” Bercy added in a statement.
Gain market share from Rosatom
“The benefits of the capital increase will contribute to financing important projects for the growth of nuclear activity,” said the nuclear fuel specialist, referring in particular to the expansion of its Georges-Besse II uranium enrichment plant in Tricastin, in the southern France, which should allow it to increase its capacities by a third.
This project aims to take market share from the giant in the sector, the Russian Rosatom. Russia’s invasion of Ukraine in February 2022 highlighted the desire of Western countries like the United States to rely less on Rosatom to obtain uranium for nuclear power plants.
The uranium market only has four “enriching” players in the world: Rosatom (43%), the leading exporter, the European group Urenco (31%), the Chinese CNNC (only for its domestic market) and Orano (12%). . which deals with natural uranium from Canada and Kazakhstan.
This announcement comes one day after Orano’s decision to “suspend” its production in Niger, as of October 31, “due to not being able to continue working” and to export its uranium concentrate, having not been able to find an agreement territorial with the military regime that came to power in July 2023.
Source: BFM TV
