EDP to sell stake in hydropower JV to China Three Gorges

EDP - Energias de Portugal SA (ELI:EDP) has agreed to sell its entire 50% participation in Hydro Global Investment Ltd, whose main asset is the 209-MW San Gaban III hydro project in Peru currently under construction.

The Portuguese electric utility will divest its equity to China International Water & Electric Corporation (CWE), a unit of China Three Gorges SA (CTG), for USD 68 million (EUR 66.7m).

Based in Hong Kong, Hydro Global is a 50/50 joint venture (JV) between EDP and CTG which focuses on the development of hydropower facilities.

The sale is part of the updated framework agreement both parties announced in December 2021, aimed at providing more flexibility for the growth strategies of the two companies and their shareholders.

According to EDP, this transaction is in line with its 2021-2025 business plan, which will see the utility invest in more renewables, networks and in services to bring added value to its customers.

The deal is subject to regulatory and customary precedent conditions.

(USD 1.0 = EUR 0.981)

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