Portugal's EDP in talks to buy majority stake in Sunseap: Sources

SINGAPORE/LISBON: Energias de Portugal (EDP) is in superior talks to buy a majority stake in Sunseap Group in a deal that can worth the Southeast Asian renewables firm at round S$1 billion, three sources with data of the matter mentioned on Tuesday (Oct 26).

EDP Renovaveis (EDPR), 75 per cent owned by EDP, Portugal's largest utility, is in late-stage talks to buy the stake held in Sunseap by Thai power agency Banpu PCL, Singapore state investor Temasek Holdings, a Temasek-backed fund and different buyers, the sources mentioned.

EDPR's transfer to snap up the photo voltaic power group displays the world's fourth-largest renewable power producer's ambition to speed up its progress in Asia.

Banpu holds an almost 49 per cent stake in Singapore-based Sunseap by means of a subsidiary, which it has constructed up since its preliminary funding in the group in 2017. Details of stakes held by different shareholders haven't been made public.

Two of the sources mentioned that EDPR is in search of to personal a major majority in Sunseap and can also be contemplating investing no less than US$1 billion in the corporate's enterprise over the following few years.

The sources declined to be recognized due to confidentiality constraints. EDP, Banpu, Sunseap and Temasek all declined to remark.

"Although the deal is not yet closed, negotiations are at a very, very advanced stage," mentioned one trade supply.

"This deal would allow EDPR to achieve a strong presence in solar energy in Asia, which is something it has been studying for a long time," he mentioned.

Sunseap additionally counts Japanese companies and different firms amongst its buyers.

Decade-old Sunseap is now a regional photo voltaic power system developer, proprietor and operator, with greater than 2,000 megawatt-peak of photo voltaic power tasks contracted throughout Asia. It operates throughout Southeast Asia, China, Taiwan and Japan.