EDF delays its decision on Edison stake sales as Middle East conflict disrupts LNG supplies, sources say

Four people with knowledge of the situation said that the French utility EDF is delaying any decision on selling a stake in its Italian unit Edison because the war in Iran has caused disruptions in the importing of liquefied natural gases from Qatar.

EDF has worked with advisors to evaluate options for Edison since October, including the sale a minority stake of Edison to a financial partnership and an initial public offer, as France seeks to raise money to invest in more nuclear reactors.

Three people who declined to be identified because the discussion was not public said that at a meeting held in Paris on Monday EDF representatives and advisors agreed to watch the situation for a few?weeks, before making any decisions, in light of the unpredictability of the conflict in the Middle East.

According to one source, the parties will meet again at the end May for a reassessment of the situation. EDF's spokesperson stated that "at this stage, we are still evaluating?all of the options available in light of recent developments and are closely watching the market conditions." Edison did not respond immediately to a comment request.

Sources have previously said that Edison's value could range between 8 and 10 billion euro ($8 billion to $11.6 million).

The U.S. and Israeli war against?Iran almost halted shipping through the Strait of Hormuz. This blocked the export of liquefied gas from Qatar, damaging the LNG 'facilities of QatarEnergy - a long-term Edison supplier.

The 'Time' reported that EDF made a decision earlier this year to "press on" with its deliberations, despite the regulatory uncertainties brought by Italy’s new energy sector decree designed to reduce energy bills.

Edison, a leading energy company in Italy, said that QatarEnergy may extend the force majeure period on gas deliveries beyond mid-June.

EDF chose Intesa Sanpaolo IMI as its financial advisors to examine strategic options for the Italian subsidiary. This was reported earlier. Reporting by Forrest Crellin, in Paris, and Elvira pollina, in Milan. Additional reporting by Andres Gonzalez and Francesca Landini. Editing by Anousha Saoui and Daniel Wallis.

(source: Reuters)