China reduces stake in Portugal’s EDP group

6 November 2019

Chinese state group CNIC Co. through a private placement has sold a block of more than 48.7 million shares, or about 1.33% of the share capital of Portuguese power company EDP – Energias de Portugal, according to a statement issued through the Portuguese Market Securities Commission.

The announcement said that the transaction will be settled on 8 November, 2019, after which the group will hold 3.0 million shares of EDP, which will be subject to a non-trading period of thirty days.

The private placement was made by Orise, SARL, wholly-owned by Kindbright Holdings Corp. Limited, which in turn is wholly-owned by CNIC Co., formerly Guoxin International Investment Co., has a trading value of around 175.6 million euros, or a price of 3.60 euros per share.

The EDP group had announced on 31 October that it had been informed by the Chinese group CNIC that it had ceased to be a qualified shareholder since 29 October, and now held 1.8998% of the share capital of the Portuguese electricity company, which is below the 2.0% minimum established by law.

Chinese state group China Three Gorges remains the main shareholder of EDP – Energias de Portugal, with a holding and voting rights of 23.27%.

A takeover bid launched by China Three Gorges on 11 May 2018 on EDP’s entire share capital ended in April 2019 when shareholders decided to keep the 25% voting rights limit, as one of the conditions of the deal was an amendment of the group’s articles to remove that limit. (Macauhub)