Enel Brasil makes improved proposal for Eletropaulo

Enel Brasil Investimentos Sudeste SA, which earlier this week made a proposal to acquire Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, has improved the terms of its voluntary tender offer for the Brazilian power distribution company.

The Brazilian unit of Italian utility Enel SpA (BIT:ENEL) has committed to promote and back a capital hike of at least BRL 1.5 billion (USD 440m/EUR 358m) in addition to the investment under the previously announced bid.

On Tuesday, the Enel unit launched a voluntary tender offer of BRL 28 per share for 100% of Eletropaulo, conditioned on the purchase of a total number of shares equal to a stake of more than 50%. The total value of the proposal is estimated at up to BRL 4.7 billion, according to the previous statement.

A day before Enel kicked off its tender bid, Brazilian power holding Neoenergia SA announced it had agreed to subscribe for 58.9 million new common shares in Eletropaulo at BRL 25.51 per share. If the move to acquire this minority stake is successful, the Iberdrola-controlled utility expects to launch a tender bid for the rest of the shares.

Enel’s amended proposal is conditioned on the successful completion of its own voluntary tender offer, and on the postponement of the above mentioned Eletropaulo share issue.

(BRL 1 = USD 0.29/EUR 0.24)

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