EDP Raises Naturgas Stake to 100%

Energias de Portugal said July 6 it has exercised its call option to buy 5% of Spanish gas marketer Naturgas Energia, taking its interest to 100%.

In July 2010 along with the agreement to acquire a 29.43% stake of Naturgas from the Basque regional government entity, Ente Vasco de la Energia (EVE) for €617 million plus interests, Hidroelectrica Del Cantabrico (HC) and EVE agreed to a call option whereby HC could buy from EVE the remaining 5% stake in Naturgas for a price calculated in accordance with a pre-set formula.

Following the decision to exercise the above mentioned call option, EDP -- which owns the northern Spanish power supplier and generator HC -- acquired the remaining 5% stake in Naturgas from EVE for €33.3mn.

With this transaction, EDP increases to 100% its stake in Naturgas which has about 1 million clients in northern Spain.

EDP itself is owned by a mix of shareholders, the largest being Chinese state generator China Three Gorges with 21.35%, followed by funds Capital Group Companies 16.97%, Oppidum 7.19% and BlackRock 5%. In addition, Algerian state Sonatrach has 2.38%, Qatar Investment Authority 2.27% and the Norwegian oil fund through Norges Bank 2.01%. The full listing as of May 17 can be viewed here.

Mark Smedley   |    www.naturalgaseurope.com