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Portugal gives go-ahead for sale of remaining REN stake
April 17, 2014 / 3:06 PM / 3 years ago

Portugal gives go-ahead for sale of remaining REN stake

LISBON, April 17 (Reuters) - The Portuguese government gave the go-ahead on Thursday for a sale of its remaining 11-percent stake in power grid operator REN via a share offering open to retail and institutional investors.

The stake, which combines 9.9 percent held by state holding company Parpublica and 1.1 percent owned by state-owned bank CGD, is worth 82 million euros ($113 million), based on REN’s market capitalisation.

The government said it approved the final stage of REN’s privatisation at a cabinet meeting on Thursday, but is yet to set the date and terms of the sale.

REN shares fell 1 percent to 2.83 euros on Thursday, underperforming the broader market index in Lisbon, which was up 0.8 percent.

In 2012, Portugal’s government sold stakes worth a total of 40 percent in REN to China’s State Grid Corp and Oman Oil Company for nearly 600 million euros. The sale was part of the conditions set out under the country’s EU/IMF bailout.

Portugal has long overshot its privatisation target under the programme, successfully selling off around 7 billion euros in state assets, including also power firm EDP, airport operator ANA and postal service CTT.

A few smaller privatisations are still in the pipeline as Lisbon prepares to exit its bailout next month. ($1 = 0.7243 Euros) (Reporting By Daniel Alvarenga and Andrei Khalip; editing by Tom Pfeiffer)

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