British Gas owner Centrica is looking to raise funds through its shareholders.
Energy supplier Centrica has announced plans to launch a rights issue to raise capital for its acquisition of a stake in British Energy. The company - which owns British Gas - said it is seeking £2.2 billion from shareholders to buy a 25 percent stake in the electricity generator.
The acquisition depends on the success of EDF Energy's £12.5 billion bid for British Energy. Under Centrica's plans, the two companies would enter a power sharing agreement, with Centrica owning one-quarter of the company. This stake is expected to be valued at around £3.1 billion.
"British Energy is our plan A," Centrica chief executive Sam Laidlaw told the Times. However, he stressed: "We have been very clear that we haven't yet reached final agreement and the French have to have final approval from the EU."
British Energy owns eight nuclear power stations in the UK and French-owned EDF has announced its intention to build a further four if its takeover goes ahead.
Centrica also said today that its second half operating margins were expected be better than those recorded in the first half of the year, but, according to the Press Association, gave no indication as to whether this would translate into lower gas and electricity bills.
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