REN-Redes Energeticas Nacionais

M&A Activity • Jul 23, 2019

Unofficial Translation

This is an unofficial translation of the proposal indicated below and it has been prepared for information purposes only. In the event of any discrepancy between this translation and the Portuguese version, the Portuguese version will prevail.

COMMUNICATION

In accordance with and for the purposes of article 17 of the Regulation (EU) No 596/2014, of the European Parliament and of the Council, of 16 April 2014, of article 248A of the Portuguese Securities Code and other applicable regulations, REN – Redes Energéticas Nacionais, SGPS, S.A. hereby informs the market and the public that it signed a contract with Compañía General de Electricidad S.A. and Naturgy Inversiones Internacionales, S.A. for the acquisition of 100% of Empresa de Transmisión Eléctrica Transemel S.A. ("Transemel"), for 167 million USD.

The contract foresees that the conclusion of the transaction and respective acquisition of Transemel by the REN Group will take place in the beginning of October 2019.

Transemel, with approximately 93% of its revenues coming from regulated activities owns and operates 92 km of electricity transmission lines and five substations, located mainly in northern Chile.

The operation is in line with REN's strategic plan, which is based on a conservative growth strategy, favoring projects in the sectors in which the company has a vast experience, and in markets with economic stability and predictable regulatory frameworks.

This is the second acquisition that the Company makes in Chile after the purchase of 42.5% of Electrogas, a corporation that owns and operates the pipeline that links the Quintero LNG terminal to Chile's capital, Santiago.

This acquisition will be financed solely with debt.

Despite remaining attentive to investment opportunities abroad, Portugal is REN's main target and natural market, where it will continue to invest to ensure the long-term needs of the electricity and natural gas infrastructures, with a permanent focus on improving performance and quality of service, to provide a reliable, safe and efficient service at the lowest possible cost to the country and to the consumers.

Lisbon, 23rd July 2019

REN – Redes Energéticas Nacionais, SGPS, S.A.

REN – REDES ENERGÉTICAS NACIONAIS, S.G.P.S., S.A. Listed Company (Sociedade Aberta) Head Office: Avenida Estados Unidos da América, nº 55, 1749-061 Lisbon Share Capital: € 667,191,262 Commercial Registry Office of Lisbon: registry and tax sole number: 503 264 032