Sao Paulo: Energy company Engie Brasil (EGIE3.SA), in a newly opened tab, announced on Friday that it has agreed to acquire two hydroelectric plants in northern Brazil for roughly 3 billion reais ($523.2 million), as stated in a securities filing.
Engie Brasil is acquiring the companies possessing the concessions to operate the Cachoeira Caldeirao facility in Amapa state, Santo Antonio do Jari facility on the Amapa and Para states' border.
The concessions terminate in 2048 and 2045, respectively. The assets divested by 'EDP Energias do Brasil' and 'China Three Gorges Energia' have a combined installed capacity of 612 megawatts. CFO Eduardo Takamori stated, "The deal will benefit shareholders by enabling us to direct capital towards assets that are already functioning and generating secure, long-term revenues."
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Engie Brasil stated that the deal's value, which awaits approval from Brazilian regulators and Engie's shareholders, represents approximately 2.3 billion reais in equity and 672 million reais in net debt.
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