The Portuguese government reentered REN by acquiring up to 20% through Parpública, while keeping State Grid as a reference shareholder with a 25% stake.

Portugal notes its historically strong ties with China and explains that the state’s REN entry does not alter State Grid’s 25% stake.

The operation is framed as financially viable for Portugal, not harming the deficit or debt, and balances a 20% purchase with preserving State Grid’s reference status.

Some deputies criticized the move as ill-timed and questioned why Portugal paid about 15% above the six-month average, roughly 50 million euros, while the government cited market liquidity and transaction constraints.

Parpública led the deal with Caixa BI as financial adviser and Sílvero as legal adviser, at roughly 100,000 euros in advisory fees, following standard legal and viability procedures including ETF approval and a favorable Court of Audits view.

The operation was kept confidential to prevent market manipulation, with only six high-level government officials aware before signing.

Negotiations were conducted by Parpública, with a small circle of six officials informed, including the Prime Minister and senior ministers.

The move is presented as part of a broader trend of increased government involvement in strategic energy infrastructure amid geopolitical uncertainty.

Amancio Ortega’s Pontegadea earned about 462 million euros from the sale and related dividends over five years.

REN is a critical asset; the investment aims to bolster energy security, electrification efforts, and attract investment in advanced technologies.

REN has about 40% of its capital held by small shareholders with low liquidity, making market-based acquisition costly and time-consuming, justifying a government-led purchase.

The acquisition was priced at 4.25 euros per share with a 15% premium, totaling about 390 million euros for 14% of REN after Pontegadea’s initial higher premium demand.