CMVM suspends EDP and EDP Renováveis after takeover bid news
The Portuguese market regulator decided to suspend negotiations between EDP and EDP Renováveis. CMVM awaits relevant information from the market.
EDP and EDP Renováveis negotiated normally on this week’s last session, but now, transactions for both companies’ transactions have been suspended. The Portuguese Securities Market Commission (CMVM) put a halt to businesses because it awaits relevant information from the market, after it was disclosed, this Friday, that a Chinese consortium was preparing to launch a takeover bid.
According to information disclosed by Reuters, and confirmed to ECO, the regulator decided to suspend negotiations of both listed companies’ securities. Although it will have no effect during this session, if the market does not receive any information, the transaction of shares from the company headed by António Mexia and from EDP Renováveis will be blocked.
Gabriela Figueiredo Dias made this decision after the Portuguese newspaper Expresso disclosed that a Chinese consortium that included China Three Gorges is preparing to launch a takeover bid on EDP. The blockage of EDP Renováveis’ shares is explained by the fact that the electricity company holds 82.6% equity on the company headed by Manso Neto. If a takeover bid is to be launched successfully, EDP will have to purchase the remaining shares from EDP Renováveis.
