Bloomberg News

China’s State Grid Said to Bid for 25% of Portugal’s REN

January 24, 2012

Jan. 23 (Bloomberg) -- State Grid International of China offered to buy 25 percent of Portuguese power-grid operator REN- Redes Energeticas Nacionais SA, said two people with knowledge of the potential deal. Oman Oil Co. separately made a bid for 15 percent of REN, one of the people said.

Portugal is planning to sell as much as 40 percent of REN, which runs the country’s electricity and gas grids, as a condition for receiving an aid package from the European Union and the International Monetary Fund. Bidders were required to put in proposals to buy between 5 percent and 25 percent. The state owns 51 percent of REN.

An official at the Finance Ministry declined to comment.

State Grid, a unit of China’s largest power distributor, is offering about 2.90 euros a share for 25 percent of REN and Oman Oil Co. is offering about 2.70 euros a share for 15 percent, Portuguese newspaper Jornal de Negocios reported today.

State Grid offered a premium of more than 40 percent over the Jan. 20 closing share price of 2.07 euros and Oman Oil offered a premium of more than 30 percent, one of the people familiar said.

REN rose as much as 4.8 percent and traded at 2.13 euros, up 3 percent, at 2:10 p.m. in Lisbon, where the company is based.

Oman Oil wasn’t immediately available to comment. An external spokesman for State Grid declined to comment.

--With assistance from Faisal Almanthri in Muscat. Editors: Jerrold Colten, Will Kennedy

To contact the reporter on this story: Anabela Reis in Lisbon at areis1@bloomberg.net.

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net


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