SGCC Completes Acquiring 2% Stake of REN
OREANDA-NEWS. June 04, 2012. SGCC has completed the acquisition of a 25% share in Redes Energeticas Nacionais (REN), Portugal’s national energy network.
SGCC has completed the acquisition through its wholly owned subsidiary - State Grid International Development Limited (SGID). On February 2nd 2012, the Portuguese government announced the project. On February 22nd, SGCC signed the Equity Acquisition Agreement with Parpublica and the Umbrella Agreement with REN. On May 25th, SGCC and Parpublica completed the settlement in Lisbon, Portugal.
REN is Portugal's only national energy transmission company. With rich experience and stable operation, the company owns a 45-year operation license for the national electricity transmission network, and a 34-year operation license for high-pressure natural gas transmission network (since 2012). Giving full play to its grid technology and management advantages, SGCC becomes REN's biggest shareholder as a strategic investor with a 25% stake. It will have three board-of-directors, including one vice chairman. SGCC will also send a CTO and other senior executives to participate in REN's management.
This acquisition is another major overseas investment of SGCC following the successes the Philippines and Brazil. It's the first time that a Chinese company successfully acquired a European national power transmission grid and a high-pressure natural gas transmission network. REN is of great strategic significance for Southern Europe, possessing a strong influence on the surrounding Portuguese-speaking countries. SGCC will act as a strategic investor to further develop its European market, strengthen the cooperation ties between China and Portugal, and enhance China's influence in the international power sector.