(Reuters) – French cable specialist Nexans hit a record high on the Paris stock exchange on Tuesday, following press reports that Greece and Cyprus had reached an agreement in principle on the Great Sea interconnector project linking the two countries, for which the French group had won the contract worth 1.43 billion euros.
At 1:25 p.m. GMT, Nexans shares rose 6.09% to 125.4 euros after reaching a peak of 127.40 euros earlier in the session.
“A tentative agreement between the Greek grid operator and the Cypriot Energy Ministry and regulator was reported in the Greek and Cypriot press overnight,” Jefferies analysts wrote in a note published Tuesday.
The project, won in July 2023 by Nexans, should connect Cyprus, the only country in the European Union still isolated, to the European electricity network.
But it was shut down in the summer due in part to disagreements between the Cypriot energy regulator and the Greek grid operator, analysts note.
Having not received the final notice of implementation by the end of August, Nexans had sent a letter warning that it would stop the project on September 2, triggering emergency negotiations between the Greek and Cypriot authorities, they added.
Nexans did not immediately respond to a request for comment.
(Written by Elena Smirnova with Mathias de Rozario, edited by Blandine Hénault)
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