Capital increases at EDP, EDPR registered at €1B each

  • Lusa
  • 7 March 2023

The company had already announced an investment agreement between EDPR and GIC, a Singapore sovereign wealth fund, which provided for a €1bn capital increase, to partly fund the new business plan.

A capital increase at Energias de Portugal (EDP), needed in order to launch a takeover bid for its separately quoted Brazil subsidiary EDP Brasil, and another at EDP’s Madrid-based renewables unit, EDP Renováveis (EDPR), following an agreement with a Singapore fund, have already been registered, according to a statement sent to Portugal’s stock market authority.

The capital increases are set to inject €1 billion into each company.

“EDP – Energias de Portugal, S.A. announces that the share capital increase without shareholders’ pre-emptive rights, concluded on March 3, 2023, has been registered at the competent Commercial Registry Office,” reads the statement sent to the Securities Markets Commission (CMVM) late on Monday.

This increase results from the issue of 218,340,612 securities, with a nominal value of €1 and a subscription price of €4.58 per share, which translates into an issue premium of €3.58.

On 2 March, the energy company announced the launch of a takeover bid for all of the shares in EDP Brasil that it does not own, financed by the €1 billion capital increase, now closed. At the time, €600 million had already been secured from the main shareholders.

The delisting of EDP Brasil is expected to be completed in the second half of 2023.

Also on Monday, the group informed the market regulator that the deed relating to EDPR’s own capital increase had been registered in the Asturias Commercial Registry.

The implementation of this increase foresaw the issue of 50,968,400 shares in the company, at a nominal value of €5 each. The subscription price had been set at €19.62 per share, for an issue premium of €14.62 per share.

The company had already announced an investment agreement between EDPR and GIC, a Singapore sovereign wealth fund, which provided for a €1bn capital increase, to partly fund the new business plan.

At the time, EDPR said it was considering reallocating up to €150 million of the new capital increase to a pool of qualified investors at the same price as that set for GIC.

In Monday’s stock market session, EDP shares fell 1.71% to €4.76, while EDPR shares retreated 3.52% to €20.29.