Brazil's Securities and Exchange Commission of Brazil (CVM) has postponed to June 18 the deadline for State Grid Corporation of China to recalculate the price at which it would buy out minorities in CPFL Energias Renovaveis (BVMF:CPRE3).
The decision was made by CVM's Securities Registration Superintendence (SRE) and announced by CPFL on Monday. Previously the Chinese firm had until June 4 to make the new offer.
Last month, CVM concluded that the initial price per share of BRL 12.2 (USD 3.24/EUR 2.77) suggested by State Grid should be increased. For this, the company has to use a different methodology when calculating the price, taking into consideration projections for earnings before interest, taxes, depreciation and amortisation (EBITDA) instead of previous profits.
State Grid is the majority owner of both CPFL Energia Renovaveis and its parent company CPFL Energia SA (BVMF:CPFE3) since January 2017.