Portugal completes purchase of 5.3% of REN from Fidelidade for €138.8 million

Second stage completed

The Portuguese state has completed the purchase of a 5.3% stake in REN from the insurer Fidelidade, lifting its holding in the energy grid operator to 19%. The Ministry of Finance announced the deal on Friday, 30 October, saying the purchase went through Parpública, the state holding company, once the Court of Auditors had issued its prior clearance on Thursday, 29 October. The government had first announced the Fidelidade purchase on 9 October, as part of a wider mandate for Parpública to acquire up to 20% of REN's capital.

Price and funding

Parpública paid 138.791 million euros for the Fidelidade shares. To cover the cost, the state transferred 136.036 million euros to the holding company, on top of funds left over from the first phase of the REN acquisition. The ministry put the overall investment in both operations at 528.6 million euros.

The first phase was the purchase of 13.7% from Pontegadea Inversiones, the investment vehicle of Amancio Ortega, founder of Inditex, the owner of Zara. That stake cost 389.8 million euros at 4.25 euros per share and was completed in September.

Pontegadea stake (13.7%, first phase)389.8

Fidelidade stake (5.3%, second phase)138.791

Pontegadea stake (13.7%, first phase)

389.8 million euros

Fidelidade stake (5.3%, second phase)

138.791 million euros

Data from the article text

A lower premium, and why

The price paid to Fidelidade carries an implicit premium of about 8.34% over the volume-weighted average share price of REN in the last six months. That is well below the premium of about 15% paid in the first phase. The ministry explained the gap by pointing to the different strategic value of each position.

First phase, Pontegadea (about 15%)15%

Second phase, Fidelidade8.34%

First phase, Pontegadea (about 15%)

15 %

Second phase, Fidelidade

8.34 %

Data from the article text

In its words, the ministry said:

“The premium of the first phase compensated for the governance rights granted, the lack of liquidity and the certainty of executing the operation.”

The premium on the second stage is lower, the ministry argued, because the state already has appointment powers on REN's board and the deal reinforces an existing position rather than opening one.

“The State already has appointment powers on the board of directors, and this is a reinforcement of an existing position and not a first entry into the capital.”

The ministry also cited lower execution and integration risk for the second step.

Shareholding after the deal

With 19%, the state is now the second-largest shareholder in REN, behind the State Grid Corporation of China, which controls 25% of the capital. The first stake gives the state the right to appoint a non-executive director. The ministry framed the larger public presence as a tool for monitoring and alignment with national priorities in a sector it described as strategically important. It also said institutional stability, operational continuity and regulatory stability would be preserved, and that the government now considers its goal of a strategic position in REN achieved.