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Brazil's Eneva builds 0.5% shareholding in AES Tiete

Wind park in Brazil. Author: Fotos GOVBA. License: Creative Commons, Attribution 2.0 Generic

March 12 (Renewables Now) - Brazilian energy company Eneva SA (B3:ENEV3) has bought shares amounting to 0.5% of the capital stock of local peer and takeover target AES Tiete Energia SA (B3:TIET11).

Specifically, Eneva has acquired 2 million units, including both common shares and preferred shares, at an average price of BRL 16.94 per unit, totalling some BRL 33.88 million (USD 6.95m/EUR 6.24m).

By making this purchase, Eneva secures the right to take part in AES Tiete’s general shareholders meetings. The suitor now has 2 million common shares, representing 0.25% of the total amount of common shares in AES Tiete, and 8 million preferred shares, representing 0.66% of the total amount of preferred shares.

On March 1, Eneva made a hostile cash-and-stock proposal to buy out AES Tiete that includes a BRL-2.75-billion cash payment and the exchange of 0.0461 of its common shares for each common or preferred share of AES Tiete.

Earlier this week, AES Tiete announced it will hire financial and legal advisors to help it evaluate the merger proposal.

(BRL 1 = USD 0.205/EUR 0.184)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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