Enel SpA's Brazilian subsidiary has come out on top in the final round of an auction process for Brazilian power distribution company Eletropaulo Metropolitana Eletricidade de São Paulo SA, according to a May 31 statement by the Italy-headquartered utility.
Enel Brasil Investimentos Sudeste SA submitted a price-per-share bid of 45.22 Brazilian reais, increasing the investment to approximately 7.57 billion Brazilian reais, equal to about €1.76 billion. The price is the highest among the bidders in the ongoing process, which has also included Iberdrola SA's Neoenergia SA.
The price is the final price at which the shares tendered in the offer will be allocated at a June 4 auction, according to the statement. The tender offer is conditioned on the acquisition of a total number of shares representing more than 50% of Eletropaulo. Enel also reiterated its commitment to inject at least 1.5 billion Brazilian reais into the utility.
The acquisition of Eletropaulo would add another 7 million customers to Enel's large customer base in Brazil, which would reach 17 million, making Enel the largest operator in the country and accelerating its growth trajectory in the world's largest metropolitan areas, Enel said.
AES Corp. holds a 17% ownership stake in Eletropaulo, according to an AES representative.
As of May 30, US$1 was equivalent to 3.75 Brazilian reais.
