CNIC sold a set of 49 million EDP shares, equivalent to 1.33% of the capital, for 175.6 million euros, corresponding to 3.6 euros per share. The sale was to institutional investors.
The Chinese companies of CNIC sold, in little more than five hours, a set of 49 million shares of EDP, equivalent to 1.33% of the capital of the Portuguese electricity company, through a process of private placement with institutional and qualified investors. They now have less than 0.01% of the company led by António Mexia.
“The total proceeds of the Placement reached 175.6 million euros, corresponding to a price of 3.6 euros per share,” said the company in a statement to the CMVM, where it adds that the settlement of the transaction “will take place on November 8, 2019, through the delivery of the Shares and the payment of the price to ORISE”.
The sale was made through an accelerated bookbuild process aimed exclusively at qualified institutional investors, as announced by EDP in a statement to the market. In other words, small investors could not buy these shares.
After placing this set of shares, the CNIC, through Orise, maintains three million EDP shares, “subject to a 30-day lock-up”. This represents 0.008% of the capital of the national utility. Only after these 30 days will the Chinese be able to sell again. Société Générale organized the operation.
CNIC has been reducing its position in EDP. It even had about 5% of the capital of the company. A week ago, the Chinese group reported that its stake fell to 1.8898%, following the sale of 4.7 million shares.
The reduction comes after the failure of the takeover bid for China Three Gorges, which holds 23.27% of EDP, launched last year. The offer was withdrawn this year after the regulatory difficulties in the USA and Europe.
EDP recorded profits of 55% of profits to 460 million euros between January and September.