November 28 (Renewables Now) - Brazil's CPFL Energias Renovaveis (BVMF:CPRE3) announced on Monday that a public tender offer launched by State Grid Corporation of China was concluded successfully, allowing the latter to acquire the shares it did not already hold in the company.
The Chinese company will pay BRL 16.85 per share, or a total of BRL 4.1 billion (USD 1.06bn/EUR 938m), for roughly 243.8 million shares, representing 48.39% of the capital stock.
The conclusion comes after a dispute between State Grid and CPFL Energia's minority shareholders, who claimed that the Chinese company's initial offer of BRL 12.20 per share was unfair. State Grid had to increase its proposal a couple of times to comply with a decision by Brazil’s securities regulator CVM.
According to CPFL's filing, the financial settlement will occur on November 29, 2018. With it, State Grid and its indirectly controlled unit, CPFL Geracao de Energia, will jointly own approximately 99.94% of CPFL Energias Renovaveis' total share capital.
State Grid has been a majority holder in CPFL and its renewables unit CPFL Energias Renovaveis since January 2017.
(BRL 1 = USD 0.26/EUR 0.23)