The Kuwait Investment Authority (KIA) will sell its 4.82% stake in Areva to the French state and will stay away from nuclear investments, for now, Reuters reported on 4 August, quoting sources familiar with the situation. Kuwait's sovereign wealth fund paid €600m ($712m) for its stake in 2010. The French state will pay €83m for KIA's 46 million shares.
When KIA bought the Areva stake, Kuwait was considering developing nuclear power to meet the demand for electricity and water desalination. Quoting two sources with direct knowledge of the situation, Reuters said the French state had proposed that KIA takes equity stakes in Areva NewCo and Areva NP, which will be spun off from the legacy Areva SA.
"A proposal was made to KIA, but they have not followed up. KIA has no further development projects in nuclear," a source close to Areva told Reuters.
French media reports said KIA has complained to the state that its investment in Areva in 2010 was based on incorrect company accounts.