•  
  •  
  •  

EDPR recommends rejection of CTG's takeover bid

EDPR wind farm in Portugal. Source: EDP Renovaveis SA. License: All rights reserved

June 11 (Renewables Now) - EDP Renovaveis SA's (ELI:EDPR) board of directors said it does not recommend the acceptance of the offer made by China Three Gorges Corp (CTG) for total control of the company.

The Chinese firm made a bid of EUR 7.33 (USD 8.63) per share, which is the minimum that could have been offered, according to an evaluation report published on Saturday.

The board is of the opinion that the potential regulatory implications and outcomes of this deal, particularly in the US, are unclear and may impact the firm's strategy and growth prospects.

Given EDPR's global portfolio, the offer is also subject to several regulatory conditions and authorisations. CTG does not state clearly its intentions in case measures are imposed, which will be critical to understand the potential impact to the value of EDPR shareholders, the company said.

Aside from this offer, CTG also made a bid of EUR 3.26 per share to acquire the shares it does not own in Portuguese utility Energias de Portugal SA (ELI:EDP), but EDPR's parent company considered the offer too low and one that undervalues the company.

(EUR 1 = USD 1.18)

More stories to explore
Share this story
Tags
About the author
Browse all articles from Lucas Morais

Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription