SN Power announces acquisition of 40.65% stake in Brazilian Desenvix

Aug 16, 2011 - Norwegian renewable energy company SN Power yesterday said it entered into an agreement to acquire 40.65% stake in Brazil's sector player Desenvix, an arm of local engineering company ENGEVIX.

The transaction is estimated to cost SN Power approximately USD 440 million (EUR 305.9m), the company said in a regulatory filing.

SN Power will form a hydropower-focused joint venture (JV) with Desenvix's current owners Jackson and Funcef, with SN Power and Jackson holding 40.65% interest in Desenvix each, while Funcef will retain the remaining 18.69%.

According to SN Power, Desenvix has a portfolio of renewable energy assets of 162 MW already in operation, 176 MW under construction, as well as about 1,600 MW in projects in development stages.

The completion of the acquisition is still subject to approval from Brazilian authorities and is expected to occur within the next six months, SN Power noted.

The current operation, coupled with the recent purchase of Brazilian energy trader Enerpar, consolidates SN Power's participation in the Brazilian market, in line with the strategy mapped out by the Norwegian company, SN Power' also stressed.

(USD = EUR 0.695)

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