Chinese recover 70% of EDP investment

 In Energy, News

China’s state-controlled power company China Three Gorges has recovered 70% of its investment in the Portuguese energy giant Energias de Portugal.

Including dividends and the sale of shares, CTG has netted €1.875Bn from its position in EDP. Today it also bagged a further €143.4 million from its annual cheque that EDP pays out to its largest shareholder.
This year CTG reduced its shareholding in the electricity company led by Miguel Stilwell de Andrade to 19.03% although it continues to be its major shareholder.
EDP shareholders received their highest dividend payout ever: €753.5 million. The company has been paying out the same amount per share for the fifth year running (19 cents), but as it made a capital call in 2020 there are now more shares receiving dividend payouts.
This means, therefore, that despite the total payout of €753.5 million being the highest ever, CTG will be getting the lowest amount it has earned since the Portuguese energy company was privatised in 2011.
This year, CTG receives a gross amount of €143.4 million in dividends. If all the dividends received over 10 years as well as all the money netted from the sale of shares are taken into consideration, CTG has now pocketed €1.875Bn from EDP. The initial investment was €2.304Bn.
In July last year, CTG invested €230 million (€3.30 per share) to maintain its 21.5% position in EDP, but this year made a significant divestment by selling €100 million of shares, resulting in €534 million for the Chinese power company.