The China Three Gorges Group has acquired 99.06% of Duke Energy International Geração Paranapanema, a Brazilian company owned by US company Duke Energy, according to a statement issued on Monday.
The statement said that the Chinese group agreed to pay US$10.80 per preferred, common and preferential share (over US$89.76 million), which represents a purchase price of US$969.5 million.
When this deal is approved by the Administrative Council for Economic Defense and the National Electrical Energy Agency (Aneel), the Chinese group will have to launch a takeover bid on the outstanding shares, given that it is acquiring a controlling interest.
Duke Energy Geração Paranapanema operates and manages 10 hydroelectric facilities, eight of which along the Paranapanema River, between the states of São Paulo and Paraná, and two small hydroelectric plants, located on the Sapucai-Mirim River, in the cities of Guará and São Joaquim da Barra, in Sao Paulo.
The US group, which is divesting in Latin America to focus on the US market, entered Brazil in July 1999 with the acquisition of Companhia de Geração de Energia Eléctrica Paranapanema, which was the first power production company of Companhia Energética de São Paulo (CESP) to be transferred to the private sector, under a state privatisation programme. (macauhub)