Enel offers to acquire Brazilian power distributor Eletropaulo for EUR1.1bn

Enel has disclosed its plans to acquire Brazilian power distribution company Eletropaulo Metropolitana Eletricidade de São Paulo (Eletropaulo) for up to BRL4.7bn (€1.1bn).

In this connection, the Italian energy firm has launched a voluntary tender offer through its Brazilian subsidiary Enel Brasil’s owned Enel Brasil Investimentos Sudeste to acquire the private electric utility.

Enel has offered BRL28 (€6.64) per share to acquire the entire share capital of Eletropaulo.

The company, in a statement, said: “The transaction is in line with the Enel Group’s current strategic plan and, if successfully executed, would mark another step forward in strengthening the Group’s presence in the Brazilian distribution sector.”

Enel further said that the exercise of the voting rights of the shares purchased by Enel Sudeste in Eletropaulo will be subject to approval from the Administrative Council for Economic Defense (CADE), the Brazilian antitrust authority.

Headquartered in Barueri, Eletropaulo is among the largest power distributors in Brazil, serving more than 18 million customers across 24 municipalities in the metropolitan region of São Paulo.

Founded in 1899, Eletropaulo is majority owned by Energisa, an electric services company based in Rio de Janeiro.

Eletropaulo’s proposed acquisition by Enel Sudeste will be subject to approval from Agência Nacional de Energia Elétrica (ANEEL), the Brazilian energy regulator.

Apart from Enel, Spanish energy company Iberdrola’s subsidiary Neoenergia is also looking to acquire Eletropaulo.

Neoenergia has offered to acquire a minority stake of 26% in the Brazilian power distribution company at BRL25.51 (€6.05) per share. The company said that should it succeed in the transaction, it will acquire the remaining stake in Eletropaulo for a total sum of BRL5.7bn (€1.35bn).

Eletropaulo revealed that its board is assessing the offer from Enel alongside its financial advisers. The Brazilian power distributor also added that the Italian firm’s proposal would be conditional on the cancellation of a previously proposed issue of 58.9 million new shares, representing a stake of 26% in the company.