- Energies de Portugal (EDP) SA will sell its 50% stake in Hydro Global Investment Ltd.
Energies de Portugal (EDP) SA will sell its 50% stake in Hydro Global Investment Ltd. The main asset of Hydro Global is the 209 MW San Gaban III hydro project in Peru. The project is still under construction.
EDP will now channel its equity to China International Water and Electric Corporation (CWE). CWE is a unit of China Three Gorges SA for USD 68 million.
Based in Hong Kong, Hydro Global is a 50/50 joint venture between EDP and CTG. Its focus is the development of hydropower facilities.
The sale forms a part of the updated framework agreement between both companies, which was made public in December 2021. It focuses on providing flexibility for the companies’ growth strategies and stakeholders.
EDP revealed that the transaction is in tandem with its 2021-2025 business plan. The plan is geared at helping EDP make more investments into renewables, networks and services that bring more value to its customers.
The deal is subject to regulatory and customary precedent conditions.