With EDP at 11-year highs, BlackRock and Elliot reinforce positions

BlackRock and the Paul Elliot Singer fund, two of EDP’s largest shareholders, increased their positions in the Portuguese’s electricity company earlier this year, they announced to the Portuguese regulator (CMVM) on Thursday. The reinforcement comes after the 11-year high reached by EDP shares at the end of last year.

BlackRock now holds over 5% of EDP’s share capital, reinforcing its status as the third largest shareholder in the company led by António Mexia.

“On January 8th, 2020, BlackRock communicated to EDP, under article 20 of the Securities Code, that it holds a qualified holding of 5.07% of the share capital and voting rights of EDP, of which 5.01% is associated with shares and the remaining 0.06% with financial instruments,” a statement by EDP sent to the Portuguese regulator.

According to the electric company, “BlackRock exceeded the 5% threshold associated with shares on January 7th, 2020.” Previously, the management company held a 4.56% stake through shares and 0.44% through other financial instruments.

This operation took place one day after Paul Elliot Singer also reinforced his stake in EDP’s capital. The fund reinforced its status as the fifth largest shareholder in the company, with a qualified holding of 2.4518%, above the previous position of 2.2925%.

These two reinforcements take place after EDP saw its shares hit 11-year high at the end of last year. This happened after the electric company led by António Mexia announced the sale of six dams in the Douro for 2.2 billion euros.

This week, on January 7th, Goldman Sachs issued a note saying that EDP after this deal has conditions to increase dividends, and strengthen its stake in EDP Renováveis.