EDP says China Three Gorges takeover bid is low

11 June 2018

EDP’s Management believes that

the takeover bid launched by China Three Gorges (CTG) is low and that shareholders should be compensated for allowing the takeover of the company.

However, EDP acknowledges CTG’s “merit in strategic intentions and teh outlined plan” and leaves the door open for negotiations with the Chinese group.

CTG intends EDP to be the market leader in Brazil, with an installed capacity four times higher than the current one and to have privileged access to the huge Chinese wind power market.

According to Portuguese daily newspaper Diário de Notícias, EDP considers that “the offer undervalues EDP, taking into account the premiums paid in previous public offers in cash to acquire control.”

Given the uncertainties of the potential impact on EDP, the board of directors said that “it will seek more information to be able to form a more informed opinion on the quality of the project.”

Renewables arm EDP Renováveis in a statement said the price of 7.33 euros per share “does not adequately reflect the value” of the company and “recommends not accepting the bid price. (macauhub)