EDP launches a tender offer on Renováveis. The sale of Naturgas will finance the operation

  • ECO News
  • 29 March 2017

The company headed by António Mexia currently holds 77.53% of EDP Renováveis. The head office intends to purchase the remaining 22.47% and will use the sale of Naturgas to finance the operation.

EDP has launched a tender offer of EDP Renováveis. The price offered is 6.80 euros per share, an amount which represents a 8.5% premium compared to this Monday’s closing quotation. The company headed by António Mexia holds 77.53% of EDP Renováveis and aims to purchase 22.47% of the shares it doesn’t hold in EDPR. That acquisition, which could cost up to 1.3 billion euros, should be financed by the sale of its Spanish gas distribution unit Naturgas, for 2.6 billion euros.

The announcement was made this Monday in a preliminary announcement sent to the CMVM: “It is hereby made public the decision, adopted by EDP, to launch a general and voluntary tender offer over the shares representing the share capital of EDP Renováveis“.

In addition, it is stated in the announcement: “The consideration offered, payable in cash, is of € 6.80 (six euros and eighty cents) per share, deducting any (gross) amount which may be attributed to each share, such as dividends, advance for account of profits or distribution of reserves, such deduction to be made from the moment in which the right to said amount has been detached from the shares and provided such detachment occurs prior to the financial settlement of the Offer”.

The amount to be offered represents a 10.5% premium when compared to the average price considered for the shares of EDPR over the past six months, EDP details. If the offer is fully accepted by EDPR‘s shareholders, EDP will have to pay 1.332 million to hold Renováveis.

The operation will be financed through the sale of the Spanish Unit of gas distribution Naturgas, for 2,591 million euros, which EDP also announced this Monday.

The tender offer could force Renováveis do leave the Stock Market, if EDP comes to hold more than 90% of the company. “In the event that the Offeror comes to hold, as a result of the Offer, an amount of shares that exceeds 90% (ninety percent) of the voting rights corresponding to the share capital of the Target Company, the Offeror considers the possibility to request the withdrawal of the shares of the Target Company from Euronex by Euronext Lisbon, the official regulated market managed by Euronext Lisbon”.

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