Energia de Portugal (EDP) is to exit the Macao power market through a deal with a Chinese state-owned power company, according to reports.
Under the agreement, the Portuguese energy company will sell its 50 percent stake in Energia Asia for an estimated US$110 million to the China Three Gorges Corporation.
Energia Asia is a subsidiary whose only asset is a 21.2 percent stake in Companhia de Electricidade de Macau (CEM), the exclusive concessionaire for electricity transmission, distribution and commercialisation in Macao since 1985.
[See more: EDP to sell US$500 million hydroelectric project in Peru to China Three Gorges]
A statement by EDP issued last week said that the total consideration of US$110 million is still “subject to adjustments” and that the transaction will comply with the relevant “regulatory conditions precedent and other usual conditions”.
Energia de Portugal was established in Lisbon in 1976. China Three Gorges is a major shareholder, with a 20.86 percent stake.
Besides Energia Asia, CEM’s main shareholders include Macao’s Nam Kwong Development (42 percent), Hong Kong’s Polytech Industrial (11 percent), and Singapore’s AsiaInvest (10 percent). The Macao SAR government holds an 8 percent stake.
