Portugal Re-enters REN Capital with 13.7% Stake Purchase

Portugal's state holding company, Parpublica, has acquired a 13.7% stake in the national power grid operator REN, marking the government's return to the company's capital after a 12-year absence. The shares were purchased from Pontegadea, the investment vehicle of Amancio Ortega, founder of Zara. The deal, announced late Friday, involves 91.72 million shares valued at approximately €325 million based on Friday's closing price, though the exact financial terms were not disclosed.

Prime Minister Luis Montenegro stated that the acquisition is intended to protect Portugal's strategic interests in its electricity infrastructure. He described the purchase as a sound investment, noting that REN offers a dividend yield of around 4%. Montenegro also clarified that the government has no plans to fully re-nationalise the company.

The move aligns with a broader strategy announced in June to establish a sovereign wealth fund that would hold stakes in key infrastructure and energy enterprises. Additionally, the government has expressed a desire to have a greater say in REN's management, particularly in the wake of a massive blackout in April 2025 that affected both Portugal and Spain. That incident prompted a €22.6 billion investment programme over the next nine years, focusing on mitigating risks such as climate change and power outages, with significant allocations for power and gas grid upgrades.