ROME (dpa-AFX) - Italian utility Enel (ENLAY.PK, EN) said that its subsidiary Enel Brasil S.A. has presented offer for the acquisition of about 94.8% of the share capital of Celg Distribuição S.A., an energy distribution company that operates in the Brazilian state of Goiás, during a public tender organised by the Brazilian government via national development bank BNDES for the privatisation of CELG. The offer is worth 2.187 billion Brazilian reais or approximately $640 million.
After the purchase of CELG, Enel Group's client base in Brazil is expected to increase to 10 million, from 7 million. At the same time, Enel Group's customers at global level are expected to increase to approximately 65 million from the current 62 million.
'We are very happy to be selected by Brazilian authorities for the purchase of such an important distribution company,' said Enel CEO and General Manager Francesco Starace.
The technical and economic content of Enel Brasil's offer will be assessed between now and December 9th, 2016, when BNDES is expected to announce the preliminary results of that assessment. The government is expected to announce the final result of the tender on December 20th.
The signing and closing of the purchase agreement are both expected to take place in the first quarter of 2017, following approval from antitrust authority CADE and electricity regulator ANEEL.
After closing of the purchase of approximately 94.8% of the company's share capital, a residual stake of around 5.1% of CELG will be offered to the company's current employees and retired employees, through a process that will allow Enel Brasil to purchase the shares not bought by current employees and retired employees, the details of which will be announced at a later date.
Established in 1956 and with its headquarters in Goiânia, CELG- which is currently a subsidiary of state-controlled electricity company Eletrobras- operates in a territory that covers more than 337,000 km2 through a concession that is valid until 2045.
The sale of CELG is part of the privatisation of state assets launched by the Brazilian government. CELG's market includes 237 municipalities with a combined population of about 6.2 million people. CELG's customer base of 2.9 million is served via a network over 200,800 km long.
Copyright RTT News/dpa-AFX