Exclusive: EDF delays decision on Edison stake sale as Middle East conflict disrupts LNG supply, sources say

• EDF and advisers agreed at a Monday Paris meeting to monitor the situation for weeks before deciding next steps, with a reassessment planned for late May
• The war on Iran has nearly halted shipping through the Strait of Hormuz, with QatarEnergy cancelling Edison's LNG cargoes through mid-June and potentially extending force majeure beyond that date
• Edison is valued between 7-10 billion euros ($8-11.6 billion), with EDF working with Intesa Sanpaolo IMI and Lazard as financial advisers on strategic options

Summary: EDF Delays Edison Stake Sale Amid Middle East Conflict

French utility EDF has postponed decisions regarding the sale of a stake in its Italian subsidiary Edison due to disruptions in liquefied natural gas (LNG) supplies caused by war in Iran, according to sources familiar with the matter.

Key Developments:

• EDF has been working with advisers since October to evaluate strategic options for Edison, including selling a minority stake to a financial partner or pursuing an IPO
• At a Monday meeting in Paris, EDF representatives and advisers agreed to monitor the situation for several weeks, with parties reconvening at the end of May
• Edison is valued between €7-10 billion ($8-11.6 billion)

Market Impact:

The U.S.-Israeli war on Iran has nearly halted shipping through the Strait of Hormuz, blocking Qatari LNG exports and damaging QatarEnergy facilities. QatarEnergy, a long-term Edison supplier, has cancelled nearly all LNG cargoes to Edison between April and mid-June, with potential extensions beyond mid-June under force majeure.

Strategic Context:

France is seeking to raise funds through this transaction to support greater investment in nuclear reactors. EDF had previously decided to proceed with deliberations despite regulatory uncertainty from Italy's energy-sector decree aimed at reducing energy bills.

Advisers:

EDF has engaged Intesa Sanpaolo IMI and Lazard as financial advisers to study strategic options for the Italian subsidiary.

The delay reflects the significant uncertainty surrounding energy markets amid ongoing Middle East conflicts, which could affect Edison's operational stability and valuation.