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Brazilian CTEEP acquires 100 per cent stake in IENNE [free access]

May 8, 2017

Companhia de Transmissão de Energia Elétrica Paulista (CTEEP)—a Brazilian subsidiary of Colombian state-owned power company Interconexión Eléctrica S.A. (ISA), has exercised its rights to acquire the entire equity interest of the country’s local concessionaire Interligação Elétrica Norte e Nordeste (IENNE), from Spanish company Isolux Energia e Participações S.A. (Isolux) and local power company Construções e Participações S.A (Cymi Holding). Isolux holds 50 per cent share and CYMI owns 25 per cent share in IENNE. The deal has cost CTEEP about BRL96.75 million, under which CTEEP has purchased 164 million ordinary shares in IENNE from Spain's Isolux and 81.8 million ordinary shares from Rio de Janeiro-based Cymi Holding.

 

The conclusion of the transaction and the actual acquisition will be subject to certain conditions applicable to the respective purchase and sale agreement, such as the prior approval from the Brazilian energy regulator Agencia Nacional de Energia Eletrica (ANEEL). If approved, the transaction results in the transfer of 100 per cent control of IENNE to CTEEP. IENNE was formed to participate in Auction No. 004/2007 hosted by ANEEL in March 2008. It won Lot A during the auction, under which it is responsible for the implementation, operation and maintenance of the 710-km, 500 kV Colinas–Ribeiro Gonçalves–São João do Piauí line along with other reinforcements.

 

(BRL1=USD0.32)