Brazil's Energisa gives up on buying Eletropaulo

Brazilian electricity distributor Energisa SA (BVMF:ENGI3) has abandoned its plan to acquire local sector player Eletropaulo Metropolitana Eletricidade de Sao Paulo SA (BVMF:ELPL3).

Energisa announced in a filing on Friday that it has withdrawn its offer of BRL 19.38 (USD 5.49/EUR 4.60) per Eletropaulo share and added that it will not be taking part in the auction for a controlling stake scheduled for June 4.

In the meantime, Neoenergia SA, which is majority-owned by Spanish utility Iberdrola SA (BME:IBE), and a local unit of Italian utility Enel SpA (BIT:ENEL) are still competing to take control of Eletropaulo. Energisa was the first to make an offer but never sweetened it, unlike the other two bidders.

Enel Brasil Investimentos Sudeste SA is currently the highest bidder, with a proposal of BRL 32.2 per share.

(BRL 1.0 = USD 0.283/EUR 0.238)

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