December 26 (Renewables Now) - Brazilian utility Engie Brasil Energia SA (BMVF:EGIE3) said on Monday its unit Engie Transmissao has agreed to acquire a 100% stake in a company that holds a concession to build and operate around 1,800 kilometres of power lines in Para and Tocantins.
Engie Transmissao signed a share purchase and sale agreement with Sterlite Brazil Participacoes SA, targeting all shares of Sterlite Novo Estado Energia SA.
The purchase price will reach up to BRL 410 million (USD 100.4m/EUR 90.7m), subject to customary conditions, including the securing of the Brazilian Electricity Regulatory Agency ANEEL's approval.
Sterlite Participacoes was awarded Lot 3 in ANEEL’s transmission auction in 2017, which resulted in Novo Estado signing a concession agreement with the Brazilian government agency. Besides 1,800 kilometres of power lines, the concession covers construction, operation and maintenance of one new substation and the expansion of three other substations in the Brazilian states of Para and Tocantins.
Engie Brasil said all installation licences for the project have been issued. Construction is expected to commence in 2020.
(BRL 1 = USD 0.24/EUR 0.22)