EDP says independent board shields it from scrutiny over Chinese stake

Blackrock

Today 13:10

By Sergio Goncalves
LISBON, June 25 (Reuters) - Portugal's main utility EDP EDP.LS, whose largest shareholder is China Three Gorges (CTG), is shielded from heightened scrutiny of Chinese investment in Europe and the United States thanks to its independent board, its CEO said on Thursday. 
Miguel Stilwell de Andrade said EDP has "managed to find the right balance" between shareholder representation and operational autonomy.
That enables the group to operate unimpeded in the United States, Australia, Britain and EU countries, even as policymakers are increasing scrutiny of foreign, particularly Chinese, investment in strategic sectors such as energy and infrastructure.
CTG owns 21% of EDP, which controls EDP Renewables EDPR.LS, the world’s fourth-largest wind power producer, with operations spanning 29 countries. The United States accounts for about 50% of EDPR's total installed capacity.
"From an executive management standpoint, there is no interference" from CTG, Stilwell de Andrade - who heads both EDP and EDPR - told reporters, when asked about the increased scrutiny in Europe and the United States.
He said the executive board is independent, while CTG holds only five of the 16 seats on EDP's general and supervisory board.
Asked about a Portuguese government plan to create a sovereign fund to invest in strategic energy firms like EDP, the CEO said it was too early to judge the plan given the lack of details.
"This is a free market, investors will decide to invest or divest depending on whether they see an opportunity," he added.
EDP's second-largest shareholder is U.S. asset manager BlackRock, with an 8.35% stake, followed by Spain's Oppidum with 6.82%. Norway's sovereign wealth fund manager Norges Bank holds 1.81%. Singapore's sovereign fund GIC holds 4.4% of EDPR.
     

 (Reporting by Sergio Goncalves; Editing by Susan Fenton)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net/))