August 20 (Renewables Now) - The board of directors of Brazilian energy company CPFL Energia (BVMF:CPFE3) has approved the acquisition of State Grid Brazil Power Participacoes SA's shares in CPFL Energias Renovaveis (BVMF:CPRE3).
The decision was made public on Monday.
The local unit of State Grid Corporation of China indicated in May that it was willing to sell the shares it holds in the renewable energy company at a price of BRL 16.85 (USD 4.15/EUR 3.74) per share. At the time, the two parties signed a memorandum of understanding (MoU) and proceeded with negotiating the terms of the transaction.
According to information on the website of the renewable energy company, China's State Grid owns 46.76% of its capital stock, while CPFL Energias has 53.18%. The latter explained in May that the execution of this transaction would eliminate the need to issue new shares in a potential future consolidation involving the renewables arm, which could compromise the compliance with local laws.
(BRL 1 = USD 0.246/EUR 0.222)