EDP: China Three Gorges' recent senior management reshuffle could lead to withdrawal of EUR 3.26/share offer - report (translated)
12 SEP 2018
China Three Gorges’s (CTG) takeover bid for Energias de Portugal [ELI:EDP] could be withdrawn because of recent changes to the Chinese state energy group’s senior management, reported Sol. Sources familiar with the process said Ya Yang, CTG’s CFO, has left for another state company and CTG CEO Lu Chun has been replaced by Deputy Minister for Water Resources Lei Mingshan.
The two ex-CTG executives were seen as pivotal to the success of the EUR 3.26/share voluntary offer on EDP launched in May this year, the report said. CTG already owns 23.27% of EDP, and CNIC, another Chinese state energy firm, owns an additional 4.98% of the listed Portuguese utility.
Another reason for CTG not proceeding with its bid to acquire the rest of EDP is that another Chinese firm, StateGrid , is the largest shaeholder in REN [ELI:REN], the Portuguese electricity network company, the report said, and this might create regulatory issues over Chinese state energy firms' ownership.