REN: Portugal's Parpública to buy 13.7% stake
What's the deal? Portuguese state holding company ParpúblicaDealroom has a profile for this one. Try Dealroom → has signed a contract to acquire 13.7% of REN (Redes Energéticas Nacionais)Dealroom has a profile for this one. Try Dealroom →, the country's electricity and gas grid operator, from Pontegadea InversionesDealroom has a profile for this one. Try Dealroom →. The Spanish holding is tied to Amancio OrtegaDealroom has a profile for this one. Try Dealroom →, founder of ZaraDealroom has a profile for this one. Try Dealroom →, and was REN's second-largest shareholder after China's State GridDealroom has a profile for this one. Try Dealroom →.
The terms. The deal covers 91,723,676 shares. Pontegadea's filing to Portugal's securities regulator did not disclose a price, but at Friday's closing price the stake is worth about €325 million. The purchase is conditional on approval from Portugal's Court of Auditors.
Why now? The move follows Prime Minister Luís Montenegro's stated intention to create a sovereign wealth fund to invest in strategic companies and sectors — a profile REN fits. Parpública, rather than the proposed fund, is making this purchase.
The context. The state exited REN's capital in 2012, selling its stake to State Grid and Oman OilDealroom has a profile for this one. Try Dealroom → during the troika bailout period. The purchase signals a selective return to state ownership of critical energy infrastructure, even as Portugal has yet to detail how its promised sovereign fund would work.
Read more: Observador
Image credit: Gastev
