May 11, 2018 / 8:42 PM / a year ago

China Three Gorges launches bid for Portugal EDP at small premium

LISBON, May 11 (Reuters) - China’s state-owned utility China Three Gorges on Friday launched a bid to take control of Portugal’s largest company EDP, in which it is the largest shareholder with a 23 percent stake, offering a premium of almost 5 percent on EDP’s closing price.

The company said it seeks to reach at least a 50 percent voting stake plus one share in the company. It offered 3.26 euros a share for EDP. It also offered 7.33 euros a share for EDP’s wind power unit, EDP Renovaveis, which is less than its closing price of 7.84 euros.

EDP’s market capitalisation was nearly 11.4 billion euros as of Friday. The company serves nearly 10 million electricity market clients and 1.6 million natural gas customers and has over 330,000 km of power transmission lines.

The Portuguese government has no objections to the bid, Prime Minister Antonio Costa told reporters earlier. (Reporting by Andrei Khalip Editing by Alison Williams)

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