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Home  > Research Focus  >  Emerging Renewable Power Markets  >  China Three Gorges Captures Stake in EDP

China Three Gorges Captures Stake in EDP

January 11, 2012

On 23 December 2011, CTG announced that it had purchased a 21.35% equity stake in Portuguese utility EDP for €3.45 per share, or €2.7 billion. The price represents a 50% premium to EDP's closing stock price at the end of December. The deal, expected to close in early 2012, will make CTG the largest shareholder in EDP. EDP is a 77.5% shareholder in EDP Renováveis (EDPR)-a publicly listed subsidiary and one of the five largest wind plant owners globally. Key trends in this On Point include:

  • Deal bolsters CTG's global clean energy expansion strategy, provides near-term growth.
  • EDP's finances strengthened, improving renewables development position.
  • Investment re-enforces growing Sino-Latin American energy ties.

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