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    Chinese Firm Rotates EDP Directors

Summary

Portuguese EDP's largest single shareholder has replaced one of its three supervisory directors.

by: Mark Smedley

Posted in:

Complimentary, Natural Gas & LNG News, Asia/Oceania, Europe, Corporate, Mergers & Acquisitions, Corporate governance, News By Country, China, Portugal

Chinese Firm Rotates EDP Directors

Portugal's main power and gas utility EDP (Energias de Portugal) said December 10 that core shareholder China Three Gorges Corporation (CTG), which has 23.27% equity in EDP, has changed its directors on the EDP supervisory board.

Yang Ya, Dingming Zhang, and Shengliang Wu had resigned. All three had been on EDP's board since February 2012, but Chinese state-owned CTG re-appointed two of the three (Dingming Zhang, and Shengliang Wu) and appointed Ignacio Herrero Ruiz (of China Three Gorges Europe). Yang Ya's role as EDP supervisory board vice-chairman will be taken on by Dingming Zhang.

On May 11 this year China Three Gorges  made a takeover bid worth just over €9bn ($10.2bn) for the 76.73% of EDP it does not already own. On May 15 EDP said that the bid was too low. It subsequently tempered that rejection but said a higher bid was necessary. On December 3, Reuters cited EDP's chairman, Antonio Mexia, as saying that the CTG bid would now run into 2019 because of the many regulatory hurdles still to be cleared. Ya Yang, CTG's chief accountant since 2006, has been moved by the Chinese government from CTG to a different state enterprise, it was reported by a Portuguese news service in September

China also holds a 25% stake in Portugal's power and gas grid REN, through State Grid of China, which makes the latter REN's largest shareholder.