EDP will increase capital by EUR 1 B to fund takeover bid for EDP Brazil
- Portugal Business News
- Mar 2, 2023
- 1 min read
EDP will increase its capital by EUR 1 B to fund a takeover bid for EDP Brazil. The capital increase will be through investment agreements amounting to EUR 600 million with major shareholder China Three Gorges, with Singapore sovereign fund GIC Private Limited and with the Investment Authority of Abu Dhabi according to Negócios.
The takeover bid, that is for 100% of the capital of subsidiary EDP Brazil of which EDP now holds 56%, will also lead to removing the company from the stock exchange in order to simplify management.
Within this framework, EDP will invest EUR 25 B by 2026 to develop 17 GW from renewable sources, while EDP Renewables will also increase its capital by EUR 1 billion that will be entirely funded by the Singapore sovereign fund.
EDP stated that the success of this operation will strengthen the focus on renewable energy while reducing the risks linked to hydroelectric generation and also ceasing operations in the field of thermoelectric production.
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