CMVM gives green light to EDP’s takeover bid on Renováveis
EDP's takeover bid on EDP Renováveis is allowed to move forward. The CMVM approved the prospect for the operation with a 6.75 euros quid pro quo. Investors can start accepting the offer on Thursday.
The Portuguese Securities Market Commission (CMVM) approved the prospect of EDP’s takeover bid on EDP Renováveis. The quid pro quo continues to be 6.75 euros (when taking away five cents which were distributed as dividends).
The prospect of the operation announced on March 27 suffers little changes when compared to EDP’s proposal from March. It includes a request for a permanent order to buy the society’s shares if there is a removal request from the negotiations.
The counterpart offered to investors was maintained. EDP offered to pay 6.75 euros per share, a smaller amount than the 6.80 euros initially presented by investors, since EDP Renováveis, headed by Manso Neto, payed dividends ever since.
In April, EDP Renováveis stated that “although not solicited, the offer is amicable”, since it is launched by EDP’s founding shareholder. They considered the price to be “adequate” — contrary to other investors, who considered the price EDP wants to offer EDP Renováveis’ minority shareholders is not fair.
EDP aims to acquire the 22.5% stake it doesn’t already own in EDP Renováveis, EDP’s renewable-energy unit. Investors will have four weeks to decide whether or not they accept the offer. The takeover bid got to the market this Thursday, and August 3rd is the last day for the sell order can be presented.
