French nuclear power company AREVA, reeling from heavy losses over the past several years, including a $2.2 billion net loss for 2015, announced the initiation of the process for transferring its nuclear fuel cycle activities to NewCo, a new AREVA holding company, as part of its restructuring process.
In line with the announcements made during the presentation of its 2016-2020 roadmap on June 15, 2016, AREVA SA announces that it has settled, on August 29, 2016, on a draft partial transfer agreement governed by the regime for demergers, with one of its subsidiaries, the New AREVA Holding company ("NewCo"), which provides for the transfer by AREVA SA to NewCo of all assets and liabilities related to its nuclear fuel cycle activities (including Mining, Front End and Back End activities) as well as all bondholder debt, the company said.
AREVA said the adoption of the draft of partial transfer agreement providing for a remuneration based on the value of assets “in the order of 1.4 billion euros,” the company said Tuesday. The move involves all of the company's fuel cycle business from mining to front to back end activities.
AREVA also said it would convene an Extraordinary General Meeting on Nov. 3, 2016, to approve the draft partial transfer agreement.
The deal is subject to approval by the European Commission.