The French government has announced its intentions to take full control of energy utility company EDF by purchasing the remaining stake in the power utility.

The decision comes after French Prime Minister Elisabeth Borne unveiled plans to nationalise the debt-ridden company earlier this month. In a statement, the French finance ministry said that it has offered €9.7bn ($9.85bn), or €12 ($12.26) to a share, to buy the remaining 16% stake in EDF.

The government already owns 84% of the company.

Once the deal is completed, the government will fully nationalise EDF and become the company’s sole shareholder. The move will also allow the state to proceed with several projects announced by President Borne in a speech in Belfort.

One of Europe’s largest nuclear power operators, EDF is currently facing declines in output, project delays and government-imposed tariff caps on energy, as reported by Reuters. The ongoing conflict in Ukraine has further added to the company’s difficulties.

The French government expects that nationalising EDF will help secure energy supplies. In a separate statement, EDF said that it has taken note of the offer and formed an ad hoc committee to propose the appointment of an independent expert in this regard.

The company’s statement said: “The Board of Directors will issue a reasoned opinion on the proposed offer after having taken note of the report of the independent expert and the recommendation of the ad hoc committee. “The report of the independent expert and the reasoned opinion of the Board of Directors of the Company will be included in the company’s draft response document.” The buyout offer is due to be filed with the French Financial Markets Authority by early September, with the process of delisting the company expected by the end of October.