May 16 (Renewables Now) - Portuguese utility Energias de Portugal SA (ELI:EDP) said on Tuesday that the EUR-9.07-billion (USD 10.7m) takeover proposal by China Three Gorges Corp (CTG) is too low and one that undervalues the company.
Through its unit China Three Gorges (Europe) SA, the Chinese firm last week launched a voluntary cash tender offer of EUR 3.26 per share for the shares it does not own in EDP in a drive to gain majority control of the company by lifting its stake to over 50%. CTG’s current shareholding in EDP is 23.27%.
In a statement filed to the Portuguese market authority, EDP said that its executive board will issue an opinion on the takeover bid in due course. However, the company commented it “considers that the price offered does not adequately reflect the value of EDP and that the implied offer premium is low considering what is customary for European utilities where the offeror has acquired control”.
Also last week, CTG made an offer to buy EDP Renovaveis SA (ELI:EDPR) at EUR 7.33 per share. EDP holds an 82.6% stake in the renewable energy company, which at the end of March managed a global portfolio of 11 GW.
(EUR 1.0 = USD 1.184)