British Energy Group re-listed on stock exchange
Trading on the London Stock Exchange has begun again this week for one of the UK's major energy suppliers, following the successful completion of the company's restructuring.
New shares and warrants for British Energy Group, as well as new bonds for British Energy Holdings began being traded again on Monday morning, as soon as the company was re-listed.
The company got in trouble after a previous fall in wholesale power prices, and was helped out by the government. Creditors wrote off £775 million of debt and received 97.5% of British Energy’s shares.
At their lowest point, British Energy bonds were at 35% of face value, but are currently at approximately 235%.
Recent reports have valued the energy company at between £2 and £2.40 per share. If the shares begin trading at around £2.70, the creditor’s equity has been estimated at around one and half billion pounds.
However, securities in the United States are still not for sale, and may not be offered or sold there without registration or an exemption from registration under the amended Securities Act of 1933.
Any public offering of securities in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
Citigroup and HSBC have been selected as house brokers.
By Jane Kettle
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