Formerly the second largest shareholder in energy company, EDP, the US-based Capital Group has jettisoned its remaining holding.
On October 1, the Capital Group, announced to the stock market regulator that it was reducing its position in EDP to less than 3%. (HERE). Two weeks later, the Americans informed the regulator that they were selling out.
The reduction in Capital Group's shareholding in early October occurred before EDP announced a downward profit forecast, blamed on the government scrapping a €280 million CMEC State support payment.
This bailout by Capital Group came after the profit warning in which EDP boss António Mexia said that shareholders should prepare for a €200 - €300 million hit.
Meixa said at the beginning of the month that the American decision was due to a lack of stability in the sector, seeking to blame the government for a sudden collapse in EPD’s profitability,
"We have a large shareholder, the second largest, leaving the company. People like stability, they like that the rules of the game are maintained. What we see today is basically the market reaction based on recent measures that affect stability."
In 2015, Capital Group controlled 17% of EDP’s shares. The largest shareholder, China Three Gorges, is controlled by the Chinese government and holds 23.27%.
