EDP Renováveis increases capital by €55.8 million

Portugal’s renewables company EDP Renováveis had raised €55 million in capital through a reserves incorporation resulting in the issue of 11,000 shares worth €5 each.

The move was announced today (Monday May 12) in a note sent to Portugal’s securities market regulator CMVM. EDP Reováveis’ main shareholder is EDP with 71.3% of its capital.

The company said that “96.7% of incorporation rights issued through its scrip dividend programme (A scrip dividend is a dividend paid in the form of additional shares of the company’s stock, rather than cash. This allows companies to retain cash within the business while still compensating shareholders. Shareholders have the option to either receive the dividend in cash or elect to receive additional shares instead) were converted into shares which contributed to the capital raise”.

It means that holders of capital will be compensated with the issuance of new shares. Now, with the capital raise, EDP Renovávis has €5, 255,165.580.

EDP Renováveis posted a profit of €52 million in the first quarter of the year, a fall of 24% on the net result obtained in the like-for-like period. (€68 million)