March 2 (Renewables Now) - Brazilian energy company Eneva SA (B3:ENEV3) has sent a binding cash-and-stock proposal for a merger with local peer AES Tiete Energia SA (B3:TIET11) that would result in the creation of a "giant in the generation sector."
The suitor offers to exchange 0.0461 of Eneva common shares for each common or preferred share of AES Tiete and also pay BRL 2.75 billion (USD 613.2m/EUR 551.8m) in cash. If the transaction is executed, the shareholders of AES Tiete, together, will get about 92 million common shares issued by Eneva, representing 22.58% of the company's share capital.
According to Reuters, which interviewed Eneva's president Pedro Zinner, the deal would be worth a total of BRL 7 billion.
The proposal has to be approved by the shareholders of both companies in general assembly as well as by Brazil's Administrative Council for Economic Defense (CADE) and the national power sector regulator Aneel. The offer is valid for 60 days.
(BRL 1 = USD 0.223/EUR 0.201)