The Chinese invested in EDP ten years ago. Now, the Portuguese company announces an update of its partnership with CTG.
EDP announced this Friday that it will update the terms of its strategic partnership with shareholder China Three Gorges (CTG), ten years after the Chinese group entered the company.
“Considering the increasingly global positioning of both companies, and, in particular, EDP’s recent entry into the Asian market, EDP and CTG have agreed to update the terms of the strategic partnership,” said the Portuguese company in a statement sent to CMVM.
CTG is EDP’s largest shareholder, with a 19.03% stake. The Chinese entered EDP’s capital ten years ago, when it bought a 21% stake for €2.7 billion from the Portuguese state, as part of the last phase of the company’s privatisation. In between, the Chinese group also launched a takeover bid, but it fell through.
Recently, EDP Renováveis acquired Singapore-based Sunseap, which operates in markets such as Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Taiwan and Japan, in a deal valued at €600, marking the Portuguese group’s entry into the Asian market.
According to EDP, “the update of the partnership will be governed by a revised agreement to be entered into by CTG and EDP, in force from today onwards.”
It adds that the new agreement aims to “promote flexibility for the growth strategies of both companies, ensuring the application of the most rigorous corporate governance standards in the parties’ future relations and preserving the instruments of cooperation and sharing of best practices, in order to potentiate the maximization of value for both companies and their shareholder.”
The company led by Miguel Stilwell also recalls the path taken over the last ten years with the Chinese on board, namely the financing support from CTG during the European sovereign debt crisis, the business expansion in Latin America and joint research & development initiatives for the development of new technologies.