Brazilian group Eletrobras studies acquisition of stake in EDP – Energias de Portugal

4 April 2011

Rio de Janeiro, Brazil, 4 April – Brazilian group Eletrobras is analyzing the acquisition of a stake in Portuguese group EDP – Energias de Portugal as part of its internationalisation process, a source from the group said Thursday, cited by the Brazilian press.

The source also said that despite its official interest negotiations were still at an initial stage.

“There is a working group studying that asset, but nothing has been approved. The matter was not taken for appreciation by the group or the Board of Directors, and a long road still has to be travelled,” the source said.

Some scenarios are being drawn up by the study group and there is still no decision on the percentage that Eletrobras plans to acquire and, so far, a consultant ahs been hired to analyse EDP’s accounts.

A possible sale of the Portuguese State’s stake in EDP is part of the government’s strategy to gather resources by carrying out privatizations, in an attempt to reduce public debt.

According to the Portuguese Finance Ministry, the outgoing government planned to make 6.47 billion by 2013 from the sale of assets, and those sales were expected to total 1.9 billion euros this year.

According to a report Wednesday from Portugal Digital, if the acquisition of 10 percent of EDP goes ahead, Eletrobras will become the company’s second-largest shareholder, after the Portuguese state, whose stake will drop to 15 percent, whilst Spain’s Iberdrola Energia will hold 6.8 percent of the company’s capital. (macauhub)