Stanley Ho surprises Portuguese market by reducing stake in power company EDP by half

24 July 2006

Lisbon, Portugal, 24 July – Macau businessman Stanley Ho surprised the Portuguese equities market at the end of last week by reducing his stake in power company EDP – Energias de Portugal by half, despite previously announcing he intended to boost his position.

On the day following the presentation of EDP’s strategic plan for the next few years, which took place in London, Energy Finance, which holds Ho’s EDP’s shares, announced a reduction in his stake of 2.02 percent to 1.008 percent of the company’s capital, contributing to a lowering of the company’s share price on the Portuguese market.

A source at Energy Finance told Portuguese daily newspaper Diário de Notícias in Lisbon that the operation was merely intended to “tidy up the share portfolio” and that the intention to boost the shareholding continued.

The same source denied that the sale was related to the presentation of EDP’s strategic planm which, according to the Portuguese press was presented by its new chairman António Mexia, without being approved by the company’s supervisory council.

The plan includes investments of 5.6 billion euros over the next few years, mainly in boosting production capacity of wind energy and combined-cycle power plants.

it also includes increased dividends for shareholders of around 8 percent per year, as of 2006.

In a recent interview with Portuguese news agency Lusa, Ho said he intended to boost his position in EDP to 10 percent. (macauhub)