French utility EDF has pushed back any decision on the sale of a stake in its Italian unit Edison as the war in Iran has disrupted liquefied natural gas supplies from Qatar that Edison imports, four people with knowledge of the matter said.
EDF has been working with advisers since October to assess options on Edison, including the sale of a minority stake to a financial partner and an initial public offering, as France looks to raise funds for greater investment in nuclear reactors.
At a meeting in Paris on Monday, EDF representatives and advisers agreed to monitor the situation for some weeks before deciding next steps in light of the uncertainty linked to the conflict in the Middle East, three of the people said, declining to be named because the discussions are not public.
One of the sources said parties will reconvene at the end of May to reassess the situation. "At this stage, we are still assessing all the options available, in light notably of the various recent developments, and are closely monitoring the market conditions," an EDF spokesperson said. Edison did not immediately respond to a request for comment.
Edison could be worth between €7 and €10 billion ($8 billion to $11.6 billion), sources previously told Reuters.
The US-Israeli war on Iran nearly halted shipping flows through the Strait of Hormuz, blocking the export of liquefied natural gas from Qatar and damaging the LNG facilities of QatarEnergy, a long-term supplier for Edison.
EDF decided earlier this year to press ahead with deliberations despite the regulatory uncertainty brought about by Italy's new energy-sector decree aimed at cutting energy bills, Reuters reported at the time.
The Italian utility has replaced nearly all the LNG cargoes cancelled by QatarEnergy between April and mid-June but the PersianGulf supplier may extend its force majeure on gas supplies beyond mid-June, Edison said earlier this month.
EDF picked Intesa Sanpaolo IMI and Lazard as financial advisers to study strategic options for its Italian subsidiary, Reuters reported previously.
(Reporting by Forrest Crellin in Paris and Elvira Pollina in Milan; Additional reporting Andres Gonzalez and Francesca Landini; Editing by Anousha Sakoui and Daniel Wallis)