Tender offer at risk. Renováveis’ American shareholders reject EDP’s offer

  • ECO News
  • 24 July 2017

The Massachusetts Financial Services does not accept the price offered by EDP and it encourages other minority shareholders to do the same. Mexia has until Thursday to revise the bid's counterpart.

The Massachusetts Financial Services (MFS) made their position statement. The American shareholders of EDP Renováveis (EDPR) do not accept the price of the tender offer by EDP Energias de Portugal and asked António Mexia to do an upwards revision of the 6.75 euros counterpart because he should pay double that amount. Without that revision, MFS rejects the tender offer and the goal of removing the subsidiary EDP Renováveis from the Stock Market will not be met.

MFS does not intend to tender our acceptance for our shares in EDPR at the price of €6.75 under the present circumstances. We urge other minority shareholders to review our analysis in the MFS Open Letter and this position statement when making their own determination on the merits of the Tender Offer”, states the minority shareholder in a document ECO was able to access.

MFS holds 4.08% of EDP Renováveis and 18.3% of the floated share base of EDP. This means that their rejection will result in the non-compliance of two criteria which are determinant for the removal of the subsidiary from the Stock Market: it surpasses 90% of the voting rights from the subsidiary and, simultaneously, it purchases 90% of the voting rights of the offer.

In the end of the operation, EDP will take on a 97.5% equity of EDP Renováveis if it wants to remove it from the Stock Market. This scenario is perceived as impossible, given the stance taken by MFS.

MFS does not intend to tender our acceptance for our shares in EDPR at the price of €6.75 under the present circumstances. We urge other minority shareholders to review our analysis in the MFS Open Letter and this position statement when making their own determination on the merits of the Tender Offer.

MFS

Position Statement

This decision is made during the week in which EDP’s deadline to revise the 6.75 euros counterpart it is offering per each share it still does not hold in EDP Renováveis. António Mexia has until the 27th of July, next Thursday, to do so.

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