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EDP sells its stake in DECA II

EDP sells its stake in DECA II

Thursday 21, October 2010
2 min read
This article has more than 6 months
EDP – Energias de Portugal, S.A. ("EDP") signed today with Empresas Públicas de Medellín, a Colombian public utility, a Stock Purchase Agreement for the sale of its 21% stake in the share capital of Distribución Eléctrica CentroAmérica Dos ("DECA II"), along with the remaining shareholders of the company, Iberdrola and TECO.

EDP – Energias de Portugal, S.A. ("EDP") signed today with Empresas Públicas de Medellín, a Colombian public utility, a Stock Purchase Agreement for the sale of its 21% stake in the share capital of Distribución Eléctrica CentroAmérica Dos ("DECA II"), along with the remaining shareholders of the company, Iberdrola and TECO.

DECA II is a Guatemalan holding company which operates, through its subsidiary companies, on the distribution, transmission and commercialization of electricity in that country. The price paid for 21% of the equity of DECA II was $127 million.

With this transaction, EDP recognizes an after tax consolidated capital gain of €50 million.

The sale of these assets is in line with EDP's strategy of divesting non-core assets, such as minority stakes with no synergies with other assets in EDP and where EDP cannot have a relevant role in the management of the company.

EDP – Energias de Portugal, S.A.

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