EDP’s stocks value falls for 11 sessions in a row

  • ECO News
  • 13 September 2018

For the first time since CTG's takeover, the Portuguese electricity provider has hit a stock value below the tender offer price of €3.26. The value has been going down for 11 sessions in a row.

EDP’s market value has been decreasing over the last 11 sessions, in a cycle that has thrown the company’s stock to the minimum values it had since May. The shares were valued at €3.26 in the ending session of this Thursday, a value which is below the value of China Three Gorges’ tender offer. This fall has weighed down on the Portuguese stock market. However, the PSI-20 still increased, especially due to the significant valuation of the telecom company, NOS.

António Mexia’s company is witnessing its most considerable dropping cycle since at least 2008, according to Reuters’ historical database.

Stocks have lost 3.8% of their value, having reached €3.243 per share, and taking away around €465m from the electrical company’s market value, which has been considering a takeover bid from the Chinese company CTG.

Even though EDP had previously considered the tender offer of €3.26 to be quite low, having asked for an increase in the offer from CTG, the investors are now analysing the company’s value at a price per share that would be inferior to the company’s expectations.

Beijing has recently dissembled the administration connected with the takeover bid to EDP, and it has already announced a new leadership for CTG, which can mean eventually a shift in the strategy CTG will adopt regarding its tender offer to the Portuguese electricity giant.

EDP Renewables is also subject to a takeover bid from the same entity, CTG. On Thursday’s session, the day was a bit more positive for EDPR, which witnessed a slight valuation of their market value. The oil company GALP also weakened its market strength by -0.77%, with the price per share standing at €16.65, the result of Florence’s devaluation of crude in international markets; brent reached a value below the 80 dollars threshold, yet again.

Ramada, Mota-Engil and Pharol lead the losses in the Portuguese stock market, but the PSI-20 still closed today registering an increase of 0.15% or €5.315,06. Sonae’s and CTT’s performances in the stock exchange were some of the factors motivating the slight increase in the PSI-20 this Thursday.