Italian energy group Enel, through its wholly-owned Brazilian affiliate Enel Brasil, has improved the terms of its voluntary tender offer for the acquisition of the Brazilian power distributor Eletropaulo Metropolitana Eletricidade de São Paulo (Eletropaulo) from BRL32 (US$9.21) to BRL32.2 (US$9.26) per share, i.e. to about BRL5.4bn (US$1.56bn).
Eletropaulo is based in São Paulo and currently serves more than 18 million customers across 24 municipalities. The company has announced the issue of 58.9 million new shares, equivalent to a 26% stake, attracting a BRL 25.51 (US$7.55) bid from Neoenergia, the Brazilian subsidiary of Spain's Iberdrola group. Iberdrola also committed to acquire the rest of Eletropaulo's shares at a total cost of BRL5.7bn (US$1.7bn). Enel then offered BRL4.7bn (US$1.38bn) for the entire capital of Eletropaulo and Brazilian utility Energisa also bid for Eletropaulo.
Competing bids will be presented to the Sao Paulo stock exchange on 18 May 2018 and will be submitted to the Brazilian energy regulator Agência Nacional de Energia Elétrica (ANEEL).