Bloomberg News

State Grid, Oman Oil, Brookfield to Bid for REN Stake Sale

December 16, 2011

(Updates with details of planned sale in third paragraph.)

Dec. 15 (Bloomberg) -- The Portuguese government said it approved State Grid International of China, Oman Oil Co. and Brookfield Infrastructure Group Corp. as bidders in the planned sale of stakes in REN-Redes Energeticas Nacionais SA.

National Grid Plc withdrew a proposal, Luis Marques Guedes, the secretary of state for the presidency of the council of ministers, said today at a press conference in Lisbon. The government aims to complete the sale as soon as possible, Marques Guedes said.

Portugal in April became the third euro-area country after Greece and Ireland to request a bailout from the European Union and the International Monetary Fund. As part of that aid package, the government will sell its stakes in energy companies including REN and utility EDP-Energias de Portugal SA.

Portugal on Dec. 7 said it plans to sell a stake of as much as 40 percent in Lisbon-based REN, the operator of the country’s electricity and gas grids. The bidders must present binding proposals to buy 5 percent to 25 percent.

Shares of REN have declined 25 percent this year, giving the company a market value of 1.04 billion euros.

The government has hired Caixa Banco de Investimento SA and Perella Weinberg Partners as financial advisers on the sale of the stakes in EDP and REN.

REN plans to invest 3.2 billion euros ($4.2 billion) through 2016 in new lines and substations, as well as natural gas storage facilities and pipelines. The state holds 51 percent of REN.

--Editors: Alex Devine, Randall Hackley

To contact the reporters on this story: Henrique Almeida in Lisbon at halmeida5@bloomberg.net; Joao Lima in Lisbon at jlima1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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