US has to approve sale of Portuguese state’s stake in power company to China’s Three Gorges Corp

23 February 2012

Lisbon, Portugal, 23 Feb – Chinese power group Three Gorges Corp can only become a shareholder of Portuguese power company EDP – Energias de Portugal when the United States regulator approved the deal to acquire the Portuguese state’s stake in the company, state stake-holding company Parpública said Wednesday.

In a statement sent to the Portuguese stock market regulator, Comissão do Mercado de Valores Mobiliários (CMVM), after a request for an explanation from the regulator, Parpública said that until approval was given by the US authorities it would keep ownership of the shares and inherent voting rights.

In its statement to the market, Parpública said it had signed a deal with Chinese group Three Gorges Corp, on 30 December 2011, to sell 21.35 percent of EDP’s capital, but that the “actual transmission of the shares,” will only occur, “after certain administrative procedures have been carried out with the energy sector and foreign investment regulator in the United States.”

In order for the operation to be concluded it is necessary for all the regulatory authorities in the countries in which EDP is present, specifically the United States and Brazil, to approve the deal for Three Gorges Corp to buy 21.35 percent of the Portuguese group. (macauhub)