The Chinese state-owned company CNIC has bought another 2% of EDP’s shares, in a deal worth €200 million.CNIC held 3.02% of EDP and bought another 1.96% at the end of 2017, to hold 4.98% of EDP, according to EDP's annual report, dated March 5th.
The strengthening of this position will have cost the Chinese state close to 200 million but it now controls 28.25% of EDP: 23.27% through China Three Gorges and 4.98% through CNIC.
Currently EDP's articles of association limit voting rights to 25%. With this operation, the Chinese state becomes entitled to greater dividend pay outs, but it does not gain more voting power at the company's shareholders' meetings.
The Chinese state now is just over five percentage points from an obligation to launch a takeover bid. This has to happen when a shareholder owns 30% of EDP stock.
Spanish news reports in 2017 suggested that Gas Natural Fenosa is interested in buying EDP but the president of EDP, António Mexia, downplayed these rumours.
