Keeping EDP Brasil is "the best option for shareholders"

Keeping EDP Brasil is "the best option for shareholders"

Today, EDP CEO António Mexia rejected Elliott's proposal to sell the company's stake in EDP Brasil, saying that investing in the Brazilian market is "the best option for shareholders."

"It was important not to speculate about Brazil. We have been clear about what is consistent with our strategy and its growth, with its potential for monetary return. Brazil must always be seen in the context of the alternatives that maximize value for the company. Right now it is consistent, and therefore it is part of the strategy," António Mexia said during a press conference in London.

Brazil will receive about one quarter of the investments to be made over the next four years - that is, about €3 billion until 2022, especially in energy distribution grids.

António Mexia also pointed out that EDP has joint projects in Brazil with China Three Gorges (CTG - the utility's major shareholder), which is "particularly interested" in that market.

Last month, US investment fund Elliott, which owns 2.9% of EDP's capital, suggested several operations, such as selling its stake in EDP Brasil or 49% of its stake in Distribuição Elétrica Ibérica.

Regarding the latter, Mexia said he is open "to minority positions in the grids," but added that it is wise to wait to understand the rules, given the important role they play in the digitization process, which is one of the company's strategic pillars.

"We have the utmost respect for all our shareholders, but it should be proportional to their stake," said the EDP chairman in a press conference after presenting the company's strategic plan until 2022.

US investment fund Elliott owns 2.9% of the utility led by António Mexia.