The China State Grid group now controls 94.76% of the share capital of CPFL Energia, the largest private power distribution company in Brazil, following the purchase through a Public Bid of more than 408 million shares that were still owned by third parties, group subsidiary State Grid Brazil Participações said in a statement.
In a statement signed by Gustavo Estrella, director and vice president of Finance and Investor Relations, the company said that the shares purchased, which accounted for 88.45% of the total number of shares covered by the bid and 40.12% of the share capital of CPFL Energia, were acquired at a unit price of 27.69 reais, totalling 11.3 billion reais (US$3.467 billion).
“After the settlement of purchases made at auction, which will take place on 5 December 2017, State Grid, in conjunction with ESC Energia, will hold 964.6 million shares, which is equivalent to approximately 94.76% of the total capital of CPFL Energia,” the statement said.
In January of this year, China State Grid has completed the purchase of a 54.64% stake in Brazil’s CPFL Energia, paying 14.19 billion reais (US$4.5 billion) and taking ownership of the shares held until that point by construction group Camargo Corrêa, the Previ pension fund (of Bank of Brazil employees) and by Bonaire (a holding company made up of pension funds Funcesp, Sistel, Petros and Sabesprev).
The group, which in Brazil already controlled a power transmission network of approximately 10,000 kilometres, entered the Brazilian market in 2010 with its local subsidiary winning an auction to manage two new transmission lines in April 2016.
CPFL Energia is the main non-state power producer in Brazil and the third largest in the country, with a market share of 14.3%, providing electricity to millions of people. It is particularly active in power production from renewable sources. (macauhub)