MPX and E.ON SE have concluded an agreement to increase E.ON’s stake in MPX, a Brazilian power company. As part of the deal, E.ON should reach a 36.1% stake at MPX.
Initially, E.ON, which already has a 11.7% stake, will acquire additional 24.5% of MPX from EBX for a minimum price of R$10.00 (US$4.95) per share plus up to a further R$1.00 (US$0.49) per share depending upon the final settlement price of the planned capital increase and the share price performance of MPX in the six months following the closing of the transaction. The second step is a public capital increase in MPX in the approximate amount of R$1.2bn (US$594m), in which E.ON has committed to invest R$0.4bn (US$198m) at a price of R$10.00 per share. Finally, the existing MPX-E.ON 50/50 Joint Venture company, created in April 2012, will be reintegrated into MPX at book value, increasing E.ON’s stake in the company to around 36.1%.
The transaction is expected to accelerate the development of the company’s portfolio as well as to originate new growth opportunities in the Brazilian energy market. MPX currently has 1.082 MW in operation and will reach 2.838 MW until the end of 2013. Additionally, the company owns a 10.000 MW greenfield pipeline composed mainly by thermal power projects, which should play an increasingly important role in the Brazilian energy system in the coming years.
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