| Centrica to raise £2.2bn for stake in British Energy |
| Friday, 31 October 2008 | |
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Centrica, the owner of British Gas, is raising £2.2bn from existing shareholders to help fund its acquisition of a stake in British Energy.
The rights issue is for 1.4 bn new shares costing £1.60 per share and three new shares will be issued for eight existing shares. The company hopes to buy 25% of the nuclear power operator for £3.1bn if the sale of British Energy to French energy giant EDF goes ahead. British Energy, which has eight nuclear power stations, is 35% owned by the Government but is set to be taken over by EDF in a £12.5bn deal. The sale of the company is seen by many as the green light for building new nuclear plants in the UK. |
