Brazil’s Camargo Correa sells stake in CPFL Energia to China State Grid

4 July 2016

Brazilian group Camargo Corrêa has decided to sell its 23.6 percent stake in CPFL Energia to China State Grid Corp. group for 5.85 billion reais (US$1.820 billion), said the Brazilian group in a statement to the market.

The group also said the two entities had entered into a binding agreement to purchase 234 million shares in CPLF Energia held by ESC Energia, a subsidiary of Camargo Corrêa, at a unit price of 25 reais.

The value offered by China State Grid represents a premium of 21.6 percent on the price of CPFL’s shares at the close of the stock market on Friday, of 20.56 reais.

CPFL Energia’s major sharehodlers were the Bank of Brazil’s Pension Fund (Previ), with 29.4 percent, the Camargo Corrêa group, with 23.6 percent, Cesp and Petrobras social security foundations (Petros), Sistel and Sabesp (Sabesprev), with a combined share of 15.1 percent, and the remaining 31.9 percent was listed on the stock exchange.

The deal was announced on the same day that China Three Gorges took over the operation of the Jupiá and Solteira hydroelectric facilities in São Paulo, after paying 4.8 billion reais to the Brazilian Treasury. (macauhub/BR/CN)