EDP-Energias de Portugal SA, the country's biggest electricity company, said it has no plans for an initial public offering of its renewable-energy unit, which it has built up through acquisitions in the U.S. and Spain.
Lisbon-based EDP isn't planning to sell stock in the unit, said a spokesman for the utility who declined to be identified. Spanish rival Iberdrola SA said yesterday it plans to create a renewable-energy division and sell as much as 20 percent in the stock market.
“Right now, alternative energy is one of the most sought- after sectors as an investment product,'' said Guillermo Escribano, a fund manager at Metagestion SGIIC SA in Madrid.
EDP wants to produce more power from wind and dams in order to meet growing demand and emit less carbon dioxide, a gas blamed for global warming. The former Portuguese monopoly is also investing in generation abroad as it's set to face increasing competition from Spanish rivals in its home market.
Shares of EDP climbed 7 cents, or 1.7 percent, to 4.22 euros in Lisbon. The stock has gained 9.9 percent this year, giving the company a market value of 15.4 billion euros ($21 billion).
Chief Executive Officer Antonio Mexia in January said that EDP can make investments in wind power without an initial public offering of shares in the renewable-energy unit.
In March, EDP agreed to buy Horizon Wind Energy LLC of Texas from Goldman Sachs Group Inc. for $2.15 billion, more than doubling its wind-power production. The purchase of Horizon will add 3.5 billion euros to the 2.6 billion euros that EDP was already planning to invest on wind energy through 2010.
Past acquisitions by EDP include Desa, the Spanish wind-energy unit of Dutch utility Nuon NV. The Portuguese company, already one of the world's five biggest wind-energy producers, also plans to invest 2.5 billion euros through 2016 to boost hydropower capacity.
