EDP seeks full control of Brazilian unit

Portuguese utility EDP - Energias de Portugal SA (ELI:EDP) is offering up to BRL 5.76 billion (USD 1.1bn/EUR 1.04bn) to acquire all outstanding common shares at EDP Energias do Brasil SA (BVMF:ENBR3).

EDP said on Thursday it has filed a tender offer with the Brazilian Securities Market Commission (CVM) concerning 240.2 million shares. The utility bids BRL 24 (USD 4.6/EUR 4.3) to be paid in cash and in Brazilian currency. The shares held, directly and indirectly, by EDP and those currently held by EDP Brasil in treasury are not included in the offer.

With this move, made together with EDP International Investments and Services SL, EDP seeks to delist its Brazilian arm from the local stock market as well as change the firm's CVM registration to class B from class A, “which allows for the issuance of all types of securities except shares, depositary receipts of shares and other securities convertible into shares”, EDP stated in the securities filling.

This transaction aims to simplify the corporate and organizational structure of EDP, providing greater flexibility for the financial and operational management of its activities in Brazil, the Portuguese utility noted.

EDP Brasil, which booked a net profit of BRL 1 billion in 2022, is targeting 1 GW of solar generation in Brazil by 2025.

(BRL 1.0 = USD 0.192/EUR 0.180)

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