The president of EDP, António Mexia, has already said more than once that the price of 6.80 euros that the electricity company intends to offer to minority shareholders of EDP Renováveis ​​(EDP R) for its shares is fair. But there are those who do not agree and make their own accounts.

This is the case of the US asset manager MFS Investments, which represents clients with 35.5 million shares of EDP Renováveis, or 4% of the company’s capital and voting rights, and that in a letter sent at the end of last week to EDP’s management stressed that the counterpart of the takeover bid tendered by the electricity company for the 22.5% that it does not yet control in its renewable energy unit “is not fair to minority shareholders” and is capable of being ” Materially higher “. That is why it appeals to the management team led by Mexia to revise the offer price by almost 1334 million euros.

Recalling that EDP R entered into a stock exchange in 2008 worth EUR 8, MFS Investments stresses that the price now offered does not reflect long-term growth capacity. “We believe that the price has yet to recover from some uncertainty regarding the US renewable policy,” said the letter signed by the managers, Maura Shaughnessy and Claud Davis, who also consider that the pressure that the quotation had suffered with the election of Donald Trump “does not reflect the future value potential” of the company.

In a conference call with analysts following the launch of the offer, Maura Shaughnessy had already confronted António Mexia with what he considered to be a very low price compared to metrics used in other recent EDP Renewables asset sales deals. To the point of Mexia reply: “Sorry, Maura, in the past we have had more interesting conversations.”

In the letter, the manager considers that the fair value of EDP R shares should be calculated on the basis of two essential metrics: the value of the assets and the generation of cash flow. Looking at the value of assets, MFS recalls that sales made by EDP R since 2014 have reached an average of 1.5 million euros per installed megawatt (MW), with some of the recent transactions reaching 1.7 million. However, the 6.80 euros offered in the takeover bid imply an evaluation of 1.08 million euros per MW, emphasizes MFS. “Even applying a conservative metric of 1.5 million euros per MW, this would result in a value of 11.73 euros per share, 73% above the price of the takeover bid,” says the manager, who also has shares in EDP.