Six international groups interested in acquiring state’s stake in Portuguese power company EDP

24 October 2011

Lisbon, Portugal, 24 Oct – The Portuguese government has received six proposals, one of which from China Three Gorges Corp, to acquire the state’s 21 percent stake in power company EDP – Energias de Portugal, state holding company Parpública – Participações Públicas, SGPS said in Lisbon Friday.

In a statement filed with Portuguese stock market regulator CMVM, Parpública said that, “as part of the 8th phase of the process of reprivatisation of the capital of EDP, Parpública consulted potential parties interested in acquiring EDP shares, and has today received six manifestations of interest.”

According to the Portuguese press, four of the six interested parties are Brazilian groups Eletrobras and Cemig, Germany’s E.ON and the China Three Gorges Corp.

Portuguese financial daily newspaper Diário Económico reported that China Power had foregone putting forward a proposal due to another Chinese group showing interest, and that France’s EDF and Spain’s Gas Natural Formosa had dropped out.

The acquisition proposal are, for now, merely indicative and are the basis to start negotiations with the State, until binding proposals are put forward.

The acquisition contract is due to be signed by the end of the year but, due to the need for prior approval by the regulatory authorities (namely the Competition Authority) the deal is only expected to be made in the first quarter of 2012. (macauhub)