The Brazilian power generation company AES Tietê, a subsidiary of AES Corporation, has rejected the BRL6.6bn (US$1.25bn) cash and shares merger offer made by Eneva in early March 2020, considering that its terms and conditions were inappropriate for the interest of the company and that their strategies were incompatible.
Indeed, AES Tietê owns a portfolio of 12 hydropower plants, 2 wind parks (one is still under construction) and 2 solar parks, with a combined capacity of more than 3.3 GW and its strategic plan is focused on non-fossil power generation. Meanwhile, Eneva, which is owned by the Brazilian investment bank BTG Pactual and private fund Cambuhy Investimentos, mostly operates thermal power plants with a combined capacity of 2.2 GW, including 1.4 GW of gas-fired power plants and over 700 MW of coal-fired power plants. In addition, Eneva will add to units at its Parnaiba gas-fired power plant (385 MW and 92 MW, respectively) and build a 132 MW CCGT project at Jaguatirica, which will raise the company's capacity to 2.8 GW. The merged companies would have a combined portfolio of 6.4 GW through 2024, and would become Brazil’s fourth largest power generator.
AES Tietê remains open for discussion and would prefer a full-cash, higher bid. The BRL6.6bn (US$1.25bn) bid included 60% to be paid in Eneva shares (equivalent to a 22.6% stake) and 40% in cash.
Interested in Power Plants?
Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.
Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.