Portuguese group REN still interested in buying 7.5 pct of Cahora Bassa Hydroelectric dam in Mozambique

2 March 2012

Portuguese power grid group REN – Redes Energéticas Nacionais remains interested in buying 7.5 percent of the Cahora Bassa Hydroelectric dam in Mozambique, and is now waiting for an agreement to be reached between Portugal and Mozambique, which is de to happen “soon,” the group’s chairman said Thursday in Lisbon.

Whilst presenting the group’s results for 2011, Rui Cartaxo said he was confident that the deal would be closed soon, adding that taking a stake in HCB would likely be the first investment to be carried out along with the group’s new shareholders, China’s State Grid Corp and the Oman Oil Company, in Mozambique.

Recent news in the Portuguese and Mozambican press reported that the deal had yet to be closed due to differences of opinion about the price. The Portuguese side wants the deal to be done at 2006 prices, which would mean a total of 140 million euros, whilst Mozambique is saying that the shares are worth 117.5 million euros, or 22.5 percent less than the amount Portugal is asking for.

REN ended 2011 with profit of 120.6 million euros, which was 9.4 percent more than in 2010. (macauhub)