Portugal’s REN receives invitation to buy 7.5 pct of Cahora Bassa facility in Mozambique

21 April 2010

Lisbon, Portugal, 21 April – Portuguese electricity grid company Redes Eléctricas Nacionais (REN) has received an invitation from shareholder Parpública to acquire a 7.5 percent stake in the capital of the Cahora Bassa Hydroelectric dam, the company said Tuesday in Lisbon.

In a statement filed with Portuguese market regulator CMVM, REN said that it was “analysing the framework of this project, within a more general perspective of Mozambican projects for development of electricity transmission infrastructure.”

According to the statement, “in the current phase of analysis it is still too soon to give scenarios of action, and it is expected that REN’s decision on the transaction proposed by Parpública will be made in the second half of this year.”

If the acquisition goes ahead, Mozambique will be the first step in the internationalisation of REN, a goal that had already been announced by REN’s chairman, Rui Cartaxo.

Last March the governments of Portugal and Mozambique agreed terms for the sale of the 15 percent stake owned by the Portuguese state in the Cahora Bassa Hydroelectric Dam (HCB) with two companies, one indicated by the Mozambican government and another by the Portuguese government, buying half of the 15 percent each.

Mozambique indicated Companhia Eléctrica do Zambeze (Ceza), a 100 percent-owned subsidiary of Electricidade de Moçambique and Portugal named REN, which has the Portuguese state as its largest shareholder. (macauhub)