Enel Sudeste, a company fully owned by Enel’s Brazilian subsidiary Enel Brasil, has offered to buy each share of Eletropaulo’s for BRL28 (€6.7).

The financing required for the acquisition will be provided by Enel’s subsidiary Enel Americas, which is Enel Brasil’s controlling shareholder.

This acquisition is part of the Enel Group’s strategic plan to strengthen its presence in the Brazilian distribution market.

It is subject to approval from Brazilian antitrust authority, the Administrative Council for Economic Defense (CADE) and Brazilian energy regulator, Agência Nacional de Energia Elétrica (ANEEL).

Eletropaulo said in a statement: “Eletropaulo will use the resources to reinforce its capital structure, improve its indebtedness profile, as well as to invest in operational improvements, which are already set in its investment plan and restructuring that is being implemented.”

Eletropaulo has also received an offer from Neoenergia, the Spanish energy giant Iberdrola’s subsidiary.

Neoenergia placed an offer to buy minority stake of 26% in Eletropaulo for BRL25.5 (€6.05) per share.

Headquartered in Barueri, Electropaulo is one of the largest power distribution companies in the country. It serves more than 18 million customers across 24 municipalities in the metropolitan region of São Paulo.

A majority of Electropaulo’s shares are owned by Energisa, an electric services company based in Rio de Janeiro.