Portugal's EDP Details Asset Changes

Portugal’s largest electricity utility, EDP, has announced that its core Chinese shareholder has increased its stake in the company and completed a divestment.

Chinese state-owned grid operator, China Three Gorges (CTG), bought an extra 1.9183% stake in EDP on October 2. The latter said on October 3 that CTG’s stake has therefore increased from 21.35% to 23.2683%. CTG owns the world's largest hydro-electric plant, which has a generation capacity of 22.5 GW.

CGT is not the only Chinese state company with a strategic holding in a key Portuguese company. The State Grid of China owns a 25% stake in Portugal's main national power and gas grid operator REN and is its largest shareholder.

Separately, EDP announced on October 4 that it had now completed the sale – announced six months ago – to REN, of its EDP Gas distribution business, a 4,460-km gas distribution network in northern Portugal; the €532.4mn ($625.8mn) sale secured all regulatory approvals for the deal last month. 

EDP said this sale will result in a €536mn reduction in its net debt this year. The deal is one of a handful Iberian gas infrastructure divestments announced in the past year.

Mark Smedley