July 3 (Renewables Now) - One of EDP Renovaveis SA's (ELI:EDPR) minority shareholders is pushing the board of directors to consider clarifying whether interested parties can make competing takeover bids for the company before China Three Gorges Corp (CTG) registers its own offer.
Massachusetts Financial Services (MFS), an investment manager that holds 3.940% of the total shares outstanding and 3.915% of the total voting rights in EDPR on behalf of clients, sent a letter to the target’s board of directors last week, expressing concern that certain pre-conditions to the launching of CTG’s offer for EDPR could discourage other interested parties from making competing bids.
The Chinese group announced separate tender offers for Portuguese utility Energias de Portugal SA (ELI:EDP) and its renewable energy subsidiary in May. The offer for EDPR though is conditioned upon CTG securing a stake of at least 50% plus one share in EDP and obtaining the needed regulatory and administrative nods.
“MFS is concerned that these pre-conditions to the launching of the EDPR Offer could result in prolonged uncertainty surrounding the EDPR Offer calendar that may hinder or discourage the launch of potential competing offers for EDPR,” the investor said in its open letter. For this reason, MFS wants EDPR’s board to urgently clarify this matter.
Last month, EDPR's board of directors announced that it does not recommend the acceptance of the offer made by CTG. At EUR 7.33 (USD 8.55) per share, the price is the minimum that could have been offered.
(EUR 1.0 = USD 1.166)