Portuguese energy giant EDP is exploring the sale of its electricity generation assets in Portugal to secure funding for renewable energy projects, according to three sources familiar with the matter.
The strategy is set to be presented at an investor meeting in London on March 12, one source indicated. This follows a 9 billion euro takeover proposal from China Three Gorges (CTG) last year, which EDP rejected as insufficient.
EDP's conventional generation assets in Portugal and Spain are valued at approximately 1.7 billion euros ($1.9 billion). The company is targeting the sale of a portion of its operations in Portugal, which accounts for 90% of the country's electricity generation and distribution.
Activist investor Elliott has opposed CTG's bid, pushing for an alternative asset divestiture plan across Brazil, Portugal, and Spain worth around 7.6 billion euros. Elliott, holding a 2.9% stake, has urged investors to reject CTG's 23% ownership and support the asset sales strategy.
EDP CEO António Mexia will present the new strategy at a London meeting on March 12, aiming to fund renewable projects through asset sales. A parallel sale process for EDP's Pecem thermoelectric plant in Brazil's Ceara state is underway, potentially valued at $520 million.
CTG's bid requires regulatory approvals in Brazil, the U.S., Portugal, and the EU, with recent reports indicating halted talks with EU regulators. European utilities are adapting to renewable energy shifts, with EDP's EDPR subsidiary operating in 11 countries and being a target of CTG's takeover.
