Intention of EDP to pursue an equity raise of EUR 1 Billion
Intention of EDP to pursue an equity raise of EUR 1 Billion
Lisbon, March 2nd, 2023: EDP – Energias de Portugal S.A. (“EDP”) announced today a 100% tender offer over its listed subsidiary EDP Energias do Brasil, S.A. (“EDP Brasil”), 56.05%[1] owned, to acquire the shares held by the minority shareholders.
To finance the tender offer, EDP intends to raise equity, through the increase of share capital, in an amount of €1 billion. The launch and completion of this transaction will be subject to corporate approvals and favorable market conditions being met.
EDP has entered into investment agreements (“IA”) on March 1st, 2023 with China Three Gorges (Europe), S.A., an affiliate of China Three Gorges Corporation, Lisson Grove Investment Pte. Ltd, an affiliate of GIC Pte Ltd and an affiliate of the Abu Dhabi Investment Authority (“Investors”) pursuant to which the Investors committed to subscribe in aggregate up to €0.6bn subject to the terms of the IA, market conditions, certain price limits and to a standard lock-up period of 90 days, at a price to be finally determined when EDP’s equity raise is launched.
The commitment by the Investors to subscribe shares of EDP shall be subject to the decision of EDP to launch the transaction at an appropriate time vis-à-vis market conditions.
EDP – Energias de Portugal. S.A.
[1] EDP owns directly 56.05% of EDP Brasil, however consolidates 57.55%, considering treasury stock adjustment.