Brazilian state-run energy utility Eletrobras has sold its power distribution subsidiary Amazonas Distribuidora de Energia at an auction for a symbolic amount of BRL50,000 (US$13,000). It also announced that it will assume its BRL13bn (US$3.3bn) in debt before passing it to the new owner, the Brazilian consortium Oliveira Energia-Atem, who was the sole bidder and winner of the auction.
However, the transaction has not been validated yet because a Brazilian court has decided to suspend the sale process after a file was lodged by a union representing Amazonas Energia workers, who estimates that studies regarding the potential impact of the sale should have been made prior to the auction. Eletrobras later announced that it will appeal the ruling.
The divestment fits into Eletrobras' broader strategy to sell its non-core assets. It was announced in February 2018 along with the sale of five other power distribution affiliates, namely Boa Vista Energia, Eletroacre, Ceron, Ceal and Cepisa. Oliveira Energia-Atem was the winner of the auction for Boa Vista Energia in August 2018, while Energisa won Eletroacre and Ceron. Cepisa unit was sold to sole bidder Equatorial Energia in July 2018, while the sale of Ceal is suspended due to a court decision.
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