BusinessKuwaitOther News

Investment Authority sells its Areva stake

KUWAIT: The Public Investment Authority (PIA) has sold its share, 4.8 percent, in the French energy company Areva to the French Government at a value of euro 83 million ($97.7 million), the PIA said in a statement yesterday. Despite losses in the PIA investments in Areva, the authority has succeeded in posting KD 45.2 billion (approx. $149 billion) worth of net profits for the period from 2010-2011 to 2016-2017, during which it invested in the French company. This asserted PIA’s keenness on diversifying investments to make profits without being affected by losses in a single investment.

The PIA attributed its losses in Avera, specialized in nuclear power and renewable energy, to repercussions of the 2011 tsunami that hit Japan, namely the catastrophic destruction of the Fukushima nuclear reactor.

The authority started investing in Avera on December 28, 2010, purchasing 4.8 percent stake of the company’s euro 600 million ($706.5 million) capital. But after deterioration of investments in the nuclear energy due to disasters, the authority sought to withdraw from the company since 2014. The PIA reached a deal with the French Government to sell its stake, the statement said, noting that it could not do so through the bourse because trading on Areva stocks was quite limited. – KUNA

Back to top button