Duke Energy International, a subsidiary of US-based Duke Energy, completed the sale of the entire share capital of Duke Energy Geração Paranapanema to Chinese state group China Three Gorges, according to information disclosed to the market on Thursday.
The statement sent to the Brazilian Securities Commission (CVM) indicates that the Chinese group paid US$946.702 million for 99.06% of the share capital with voting rights, or about US$10.55 per share.
Under the law of public limited companies, the China Three Gorges Group will now have to carry out a takeover bid (OPA) to acquire the remaining common and preferred shares of Duke Energy still in circulation.
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.
Duke Energy International, which managed the operations abroad, on 20 December concluded the sale of its remaining businesses in Latin America – Argentina, Chile, Ecuador, El Salvador, Guatemala and Peru to Orazul Energy Group (http://orazul.com/). (macauhub)