07 April 2017

REN acquires EDP Gás

REN - Redes Energéticas Nacionais, today announced the purchase of 100% of the capital of EDP Gás from EDP Group for €532.4 M. This acquisition represents a major investment for REN, maintaining the strong commitment to its operation in Portugal, in line with its business development strategy.

With this investment, REN brings in a relevant asset in the national natural gas distribution market with growth potential, given the demographic and economic characteristics of the concession region. EDP Gás centres its activity on the development and operation of the public natural gas distribution network in the coastal region of the north of Portugal (29 municipalities in the districts of Porto, Braga and Viana do Castelo), currently being the second largest natural gas distributor in Portugal, with a 4,460-kilometre network.

The Board of Directors approved a financing structure for the acquisition that includes the use of lines of credit and a capital increase by REN for new entries in cash. This capital increase will have an expected income of up to €250 M to be carried out via public offering, respecting the shareholders' pre-emption rights, and is still subject to approval by the competent authorities.

The dividend policy will remain stable and in line with the defined strategy and reaffirming REN's commitment to a competent, sustainable and secure management model.

This operation is strictly within the company's financial discipline criteria, ensuring not only sustainable profitability, but also the maintenance of the current credit metrics consistent with Investment Grade.

For Rodrigo Costa, Chairman and Chief Executive Officer of REN: 'This operation is a unique investment opportunity in Portugal and is in line with our goal of creating value and ensuring the company's sustainability in the medium and long terms. Given this project's characteristics, our risk profile will remain unchanged. Our critical knowledge mass will be reinforced, something that is of crucial added value in a world going through major technological progress and which, in turn, reinforces REN's and Portugal's capabilities in the energy sector.'

The acquisition is subject to the customary legal and regulatory approvals.


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