China Three Gorges to Sell EDP Portugal Shares Worth EUR 500 million

 

China Three Gorges (CTG) will sell shares representing  up to 2.52% of the capital of Portugal’s main utility, EDP, worth more than EUR 500 million.

In a statement to the Portuguese Securities Market Commission (CMVM), CTG announced on Thursday the intention to sell around 100 million shares, up to 2.52% of EDP’s share capital.

In the Portuguese stock market, EDP shares are currently priced at above EUR 5.3, allowing CTG a EUR 530 million income from the sale.

According to Bloomberg, que shares are currently being offered at a discount, for a unit price of EUR 5.265, translating into a potential EUR 526 million income for CTG.

CTG currently holds 21.55% of EDP’s capital and will retain around 19% after the sale, remaining as the largest shareholder.

Before the pandemic, in February 2019, the company carried out a similar operation, in which it sold 66 million shares for EUR 292.9 million.

After that, in August, CTG invested EUR 220 million in EDP’s capital increase, to avoid diluting its stake.

In the statement released today, the Chinese state-owned company reaffirms its interest in EDP and confidence in the new management led by Miguel Stilwell d’Andrade.

The two companies established a strategic partnership more than 9 years ago, which CTG says is central to its international strategy.

Photo: EDP Headquarters, Lisbon

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