EDF Weighs Preferred Equity Sale for Edison Stake

EDF, the French utility company, is considering an innovative way to restructure its stake in Italy's Edison. The plan involves selling a 'preferred equity' portion of the stake, which could attract fresh capital while shielding investors from potential losses due to liquefied natural gas (LNG) supply shocks.

According to Reuters, EDF is revisiting its options for Edison and has discussed a preferred-equity deal tied to its holding. This type of investment typically offers a set dividend or priority payouts but doesn't share fully in the upside.

The move is significant because it allows EDF to unlock value from its Edison stake without making an all-or-nothing sale. A transaction could be signed by end-2026 or early 2027, indicating that EDF is seeking a structured and staged approach to raise cash.