China Three Gorges Corp wants to increase its stake in Energias de Portugal group

6 December 2012

China Three Gorges Corp plans to acquire the 4.14 percent stake owned by the Portuguese state in power group Energias de Portugal (EDP) via stake-holding Parpública – Participações Públicas, the group’s chief executive said in Beijing Wednesday.

“Yes, we are interested in buying a further 4.14 percent [of EDP], we are studying that matter and very soon will put forward our proposal,” Cao Guangjing told Portuguese news agency Lusa.

Cao Guangjing also said that he would travel to Lisbon on 17 December for a week to “discuss increasing cooperation,” between China Three Gorges and EDP and to make, “contacts with Portuguese government officials.”

The CEO of the Chinese group also said that technical staff from the two groups were concluding studies on Chinese investment in the wind farms of the Portuguese power company, which, under the terms of the contract signed a year ago, will total US$2 billion.

The CEO of China Three Gorges, which is EDP’s biggest shareholder, noted the “close relationship,” the group has with Chinese banks, saying that, “in future, in Portugal and in other parts of the world,” the Portuguese power company would be able to “secure financing.”

Due to the Chinese company taking a stake in EDP, a year ago, “Chinese banks now have a close relationship with EDP,” said Cao Guangjing noting the two loans agreed in August by EDP and the China Development Bank, worth 1 billion euros and 800 million euros, respectively.

In December 2011, China Three Gorges was awarded an international tender to buy 21.35 percent of EDP, making it the biggest shareholder in the Portuguese power company. It paid the Portuguese state 2.7 billion euros for the stake, which was one of the biggest-ever acquisitions by a Chinese company in Europe.

According to EDP’s website, voting rights related to the shares owned by Parpública are held by Algerian state group Société Nationale pour la Recherche, la Production, le Transport, la Transformation et la Commercialisation des Hydrocarbures (Sonatrach), as part of shareholders’ agreement. (macauhub)