China State Grid Corporation takes control of Brazil’s CPFL Energia

30 September 2016

Bonaire Participações, a company controlled by investment fund Power São Paulo FIA, decided to sell its 15.1% stake in CPFL Energia to the China State Grid Corporation, the Brazilian press reported.

With this decision, the Chinese group now controls 68.1% of the capital of CPFL Energia, after acquiring shares of 23.6% owned by the Camargo Corrêa group and 29.4% of the Employees Pension Fund of Bank of Brazil (Previ).

The remaining 31.9% are held by individual shareholders.

Energia São Paulo FIA is an investment fund controlled by the pension funds of the CESP Foundation (Funcesp), Petrobras Social Security (Petros), Sistel Social Security (Sistel) and Sabesp Social Security (Sabesprev).

The purchase of the stake of Brazilian group Camargo Corrêa cost the China State Grid Corporation 5.85 billion reais (US$1.82 billion), according to information disclosed to the market at the time.

CPFL Energia is one of the major energy groups in Brazil, with companies operating in the production, distribution and sale of electricity, as well as in services and renewable energy. (macauhub)