Brazil's Vibra Energia to take 50% stake in local biogas firm

Brazilian energy company Vibra Energia SA (BVMF:VBBr3) on Monday said it will acquire a 50% stake in local biogas producer and distributor ZEG Biogas e Energia SA.

Vibra will make an initial BRL-30-million (USD 5.6m/EUR 5.3m) payment at the closing of the transaction, followed by a secondary BRL-129.5-million disbursement.

Vibra said that it commits to invest up to BRL 412 million in the business over the next few years to develop new biogas and biomethane projects. Half of the investment amount corresponds to Vibra's 50% stake, while the second half will be contributed on behalf of the other partners.

Vibra also negotiated options to potentially reach a 70% stake in ZEG Biogas in the future, and eventually take over the business.

ZEG Biogas is a subsidiary of renewable energy company ZEG Energias Renovaveis SA and corporate consulting firm FSL Consultoria Empresarial Ltda. It produces biogas by capturing and treating landfill gas and gas from agricultural waste. According to Vibra, the biogas company has the potential to produce over 2 million cubic metres per day in up to five years.

The transaction will be finalised once Brazilian antitrust regulator CADE gives its approval and other conditions are met.

(EUR 1.0 = USD 0.188/EUR 0.180)

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