EDP Sets Timing for EDB Selldown

Energias de Portugal (EDP) has set June 29 as the date of its follow-on offer of 19.9m Energias do Brasil (EDB) shares, and a roadshow is scheduled to begin June 20. At Monday’s BRL38.33 closing price, such a transaction would raise BRL763m ($480m). A 10% greenshoe is also possible. The Portuguese utility owns 49.1% of EDB and would reduce that to 35.3% after the sale, if the 10% overallotment is included, with the free float increasing to 48.8% from 35.0%. Espirito Santo, Itau, Morgan Stanley and Santander are leads. EDP had said in March that it aims to raise EUR500m though asset sales this year.