EDP’s listed Brazilian unit has market value of $3.2 billion
Three Gorges may seek majority stake in combined entity
Shares of EDP’s Brazil unit had risen 33% this year through Monday. Three Gorges’s deliberations are at an early stage, and the companies could opt to pursue other options, the people said.
EDP shares rose 1.6% to 3.32 euros in Lisbon, after earlier climbing as much as 3.9% on Tuesday. Shares in the company’s Brazilian unit, after rising as much as 7.5%, closed up 4.8% to 20.56 reais in Sao Paulo trading, giving it a market value of about $3.2 billion.
In April, Three Gorges ended its 9.1 billion-euro ($10.2 billion) takeover offer for EDP after the Portuguese utility’s shareholders decided to keep a cap on voting rights. Three Gorges, which is already EDP’s largest shareholder with a 23% stake, has said that it will remain a “long-term strategic investor.”