March 27 (Renewables Now) - Brazilian energy company Eneva SA (B3:ENEV3) wants another meeting with the legal advisors of takeover target AES Tiete Energia SA (B3:TIET11) in order to present the regulatory, tax and structural details for the proposed transaction.
Eneva said on Thursday that it has requested a meeting on March 30 at which to continue the presentation of the structure it proposes for the implementation of AES Tiete's acquisition. Eneva's move is in response to a letter sent by AES Tiete in which it requests more information about the proposal, specifically the framework of the transaction.
The companies held a meeting on March 19, but according to AES Tiete, certain points of the current proposal are still missing, obstructing "the correct assessment of the operation, including the corporate structure planned by Eneva for its implementation".
On March 1, Eneva made a binding cash-and-stock proposal considered hostile by AES Tiete. Originally valid for 60 days, the bid consists of a BRL-2.75-billion (USD 540.1m/EUR 491.9m) cash payment and the exchange of 0.0461 of Eneva common shares for every common or preferred share of AES Tiete.
Eneva also bought shares amounting to 0.5% of the capital of the takeover target as a way to secure the right to take part in the company’s general shareholders meetings.
AES Tiete has over 3.3 GW of power generation capacity. Most of that is hydro, but it also has solar and wind assets.
(BRL 1 = USD 0.196/EUR 0.178)