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)