EDF to sell UK electricity arm to reduce debts

EDF, Europe's leading power generator, has announced that it had put on sale its electricity distribution network in the UK in order to lift €4 billion to reduce its debts.

At the end of June, EDF was burdened with a heavy debt of €36.8 billion.

EDF, which provides power to about 7.9 million homes in the UK, said a number of parties including Abu Dhabi investment fund had showed their interest in buying the network.

Energy being supplied by EDF to homes in the UK accounts for around 28 per cent of the country's electricity supply.

Pierre Gadonneix, CEO of EDF, said that the proposed sale was a "part of the announced asset divestment programme, aiming to reduce our net financial debt by at least €5bn."

Barclays Capital, Deutsche Bank and BNP Paribas are advising EDF on the deal.

Earlier, EDF sold 20 per cent stake in British Energy to Centrica of the UK in a deal worth €2.6 billion.