Rights issue to fund 25% stake in nuclear operator British Energy following sale to EDF

British Gas owner Centrica has announced a £2.2bn rights issue to raise funds for its acquisition of a stake in British Energy.

The company hopes to buy 25% of the nuclear power operator if the £12.5bn sale of British Energy to French energy giant EDF goes ahead.

British Energy owns eight nuclear plants and the land around them - considered the best spots for new reactors. The sale of the company is seen by many as the green light for building new nuclear plants in the UK.

The company will issue 1.4 billion new shares at £1.60 per share, on the basis of three new shares for eight existing shares.

Buying a stake in British Energy would be a “unique opportunity” for the firm, Centrica said.

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