Monday | January 30, 2023 |
Market Status: OPEN

Market News


S.N. NUCLEARELECTRICA S.A. - SNN

Signing of sale-purchase contract of Feldioara assets

Release Date: 3/19/2021 2:30:26 PM

IRIS Code: 5AD0C

Current report of information

Report date: 19.03.2021

Name of the issuing entity: Societatea Nationala NUCLEARELECTRICA S.A.

Registered office: 65 Polona St., district 1, Bucharest

Telephone/Fax Number: 021-203.82.00 / 021 – 316.94.00

Sole Registration Code with the Trade Register Office: 10874881

Registration number with the Trade Register: J40/7403/1998

Subscribed and paid-up share capital: 3,016,438,940

Regulated market on which the issued securities are traded: Bucharest Stock Exchange

 

To:                  Bucharest Stock Exchange

        Financial Supervision Authority

 

Significant event to report: Signing of the contract for the sale and purchase of assets within the uranium concentrate processing line of the Feldioara Branch of Compania Nationala a Uraniului ("CNU")

 

Societatea Nationala Nuclearelectrica S.A. ("SNN") informs shareholders and investors that it has signed with CNU the contract for the sale and purchase of assets within the uranium concentrate processing line at the Feldioara Branch of the CNU on March 18, 2021, following the mandate of the executive management of SNN to sign this transaction on the basis of the decisions of the Board of Directors and approval in the General Assembly of CNU Shareholders.

We recall that the shareholders of SNN approved by AGA Decision No. 5/25.04.2018 the "Strategy for diversification of the sources of supply of raw material necessary for the production of nuclear fuel", one of the measures including the identification of a solution to ensure the processing/refining capacity of the uranium technical concentrate (U3O8), i.e. the raw material from which the uranium octoxide (UO2) required for the manufacture of fuel bundles is obtained. Through specific studies and optimal conditions for the acquisition of uranium octoxide, SNN considered processing it at the Feldioara Factory by taking over the uranium technical concentrate processing line by SNN from the CNU.

By means of corroboration, by AGA Decision No. 4/30.03.2020, shareholders have approved the start of the procedures for the purchase of certain assets of the Feldioara Branch, by direct negotiation, in accordance with the provisions of OUG 88/1997 on the privatization of companies and of Law 44/1998, with subsequent amendments and additions

Following a due diligence analysis, SNN has identified the necessary assets that it will strategically integrate into the structure and thus SNN, by means of this transaction, will integrate the cycle of manufacture of CANDU nuclear fuel, except for mining activity.

The object of the transaction consists only of assets (land, buildings, special constructions, installations, machinery and equipment).

The acquisition of some assets of the Feldioara Branch is structured in two different stages: Date of signing of the contract, the stage that has taken place on March 18, 2021, and the Date of Completion. Between the two stages a number of preconditions that depend to a large extent on the support of the CNU are provided. Thus, at the time of signing the contract, the general terms and conditions of the transaction were agreed and the preconditions were established. On the date of completion, the contract for sale-purchase of assests in authentic form and the contract for sale-purchase of assests, will be signed on the basis of the terms and conditions established at the date of signing.

The preconditions deal with the transmission and issuance by the competent authorities of the necessary transfer authorisations, permits and opinions as well as clarification by CNU of certain aspects related to the insurance of the transfer of assets.

The strategic decision to acquire part of Feldioara's assets necessary for the processing of the raw material was aimed at ensuring integrated production capabilities at the SNN level and, to an equal extent, ensuring the production of fuel bundles and the optimal operation of FCN Pitesti and CNE Cernavoda, in the context of expanding the capacity of the nuclear power plant, and maintaining the nuclear fuel cycle at national level at an advantageous transaction cost.

 

Cosmin Ghita

Chief Executive Officer

 



 Print

Information provided by IRIS, the news platform of the Bucharest Stock Exchange.

______________________

Bucharest Stock Exchange ("BVB") is not responsible for the content of this News item. Issuers whose financial instruments are traded on markets operated by BVB are required to report in accordance with current legal and regulatory provisions. BVB publishes these Reports as market administrator, appointed by ASF. When, for investors’ information, Reports are published, either signed by different persons, or with conflicting information, legal liability lies fully with the signatories. BVB disclaims any obligation or responsibility towards issuers or third parties, regarding the reality, completeness and accuracy of information provided by them and distributed by BVB. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.


©2016 Bucharest Stock Exchange. All rights reserved