Portuguese government may decide to sell up to 27.5 percent of Galp Energia

15 August 2006

Lisbon, Portugal, 15 Aug – The Portuguese government may decide to sell up to 27.5 percent of Galp Energia, as part of the fourth reprivatization stage of the energy company, according to the terms of the law that was approved and published on Monday in Diário da República.

The decree law states that the privatization of Galp will include the sale of 25 percent stake and the possibility of creating a “supplementary tranche”, that may represent a 2.5 percent stake.

The supplementary tranche, as referred to in the decree law, “can not represent a stake higher than 10 percent to be sold in this [fourth] reprivatization stage of Galp”.

The Galp privatization, which is part of the government’s reprivatization program for the 2006-2007 period, was approved last February. The shares will be directly sold to financial institutions, which will be obliged to subsequently disperse the shares in the stock market, and some of them in international markets.

The tender documents for listing the shares on the stock market and defining the specific conditions (price, number of shares to be sold directly or to the public in general) need to be approved by the Cabinet. (macauhub)

MACAUHUB FRENCH