EDP's General Supervisory Board will meet, following the Board of Directors' statement that the price offered by China Three Gorges is low. Luís Amado will head the meeting.
EDP’s General Supervisory Board will meet today, ECO ascertained. It is the first meeting after the announcement of the takeover bid by China Three Gorges and that exact subject will be on the table during this meeting. In a first reaction, the Executive Board considered that “the price offered does not adequately reflect the value of EDP”.
Luís Amado will head the meeting of this entity of 21 members, most of them independent. This meeting comes after the news of the takeover bid by the largest shareholder of the Portuguese electricity company, which intends to acquire all of the company’s capital that it does not have, but it acknowledges the success of the operation if it is able to take 50% more shares. In an attempt to attract shareholders, China Three Gorges offers a 3.26 euros’ consideration per share in EDP.
This meeting will also have the CEO of the Portuguese bank BCP, Nuno Amado, the only “Portuguese” shareholder in EDP, will assess the Chinese offer, after the Board’s reaction. António Mexia states that the Board “shall issue its opinion in due course regarding the other terms of the offer”, but has already issued a first opinion about the takeover bid.
“The Executive Board of Directors considers that the price offered does not adequately reflect the value of EDP”, the electricity company highlighted, in a press release sent to CMVM, confirming the note disclosed by Bloomberg. According to the North American news agency, António Mexia is already working with the bank UBS in a defense plan.
“The implied offer premium is low considering what is customary for European utilities where the offeror has acquired control”, EDP added. The same is to say that the Board agrees with analysts and investors, who believe the amount should be higher than 3.26 euros. In the stock market, EDP is valued at 3.439 euros, well above the consideration offered by China Three Gorges.