The Portuguese state will pay €380 million to acquire a 13.7% stake in national electricity grid operator REN from Spanish investment firm Pontegadea Inversiones.
The purchase makes Portugal the second largest shareholder in Redes Energéticas Nacionais behind Chinese state utility State Grid, but the holding of more than 90 million shares does not grant the government operational control or specific governance rights.
The €380 million transaction includes a premium of more than €55 million paid to the holding company owned by Zara founder Amancio Ortega. That figure represents a 17% markup over the market value of the shares on August 14.
The Portuguese prime minister announced the acquisition on August 14 during the Festa do Pontal event, coinciding with official notifications submitted by Spanish investor Pontegadea to the Portuguese Securities Market Commission, known as the CMVM.
Market surprise over minority stake premium
Financial market analysts consulted by Portuguese business newspaper Negócios expressed surprise at the transaction price, noting that buyers rarely pay such a high premium for a non-controlling position.
Sources consulted by the publication stated that the price could only be justified if the buyer had an intense interest in acquiring a large stake from an unwilling seller, or if the transaction included unspecified rights attached to the purchase.
A market source told Negócios that purchasing a comparable volume of shares on the open market would have taken weeks and inevitably driven up trading prices, making a premium unavoidable. However, the source noted that the specific purchase price itself remained open to debate.
Another analyst told Negócios without reservation that no investor pays a premium of this magnitude simply to acquire a minority position.
Governance and shareholder structure
Despite the state's substantial expenditure, China's state-owned State Grid remains the dominant shareholder in REN with a 25% stake, which is nearly double the holding assumed by the Portuguese government.
Although the 13.7% stake does not grant executive control, the ownership of over 90 million shares will allow the Portuguese state direct access to relevant corporate information and strategic influence over REN.
REN, short for Redes Energéticas Nacionais, manages Portugal's national high-voltage electricity transmission network and gas infrastructure. Pontegadea Inversiones serves as the main investment vehicle for Spanish billionaire Amancio Ortega, the founder of global retail corporation Inditex.
