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In comments to Jornal de Negócios, Miguel Neiva de Oliveira, Partner in the Public Law practice at CCA Law Firm, analyses the implications of Parpública’s acquisition of a 13.7% stake in REN and the importance of distinguishing the State’s role as a shareholder from the exercise of its public powers.
According to Miguel Neiva de Oliveira, the presence of a public shareholder in the company’s share capital is not, in itself, either positive or negative for investors. A stable shareholder with a long-term investment horizon may be perceived as a source of stability, while the predictability of the rules, corporate governance and shareholder conduct is particularly relevant to the market.
In this context, he notes that “the risk does not lie in the State’s presence in the company’s share capital; it lies in the potential blurring of the distinction between its position as a shareholder and the exercise of public powers.”
This distinction is particularly relevant in the case of REN, given that the State is simultaneously a shareholder, a legislator and part of the public framework governing the company’s activities.
The analysis therefore highlights the importance of maintaining a clear separation between these different roles as a key factor in preserving market confidence and predictability for investors.
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