Enel Brasil Partecipações, a Brazilian subsidiary of Enel Latin America, has completed the acquisition of the entire share capital of 10 companies in the Rede Group that owns 20 mini hydro plants with a total installed capacity of 92MW.
The consideration paid for the acquisition of the 10 companies amounts to about 464M reals (US$211.8M).
The Rede Group consists of Empresa de Electricidade Vale Paranapanema SA, Rede Empresas de Energia Eléctrica SA, its subsidiaries Rede Power do Brasil SA and Tocantins Energia SA, and other minority shareholders.
The 10 companies involved in the transaction are located in three Brazilian states: five with nine plants and a total capacity of 37.6MW in Mato Grosso; three with eight plants and a total capacity of 50.1MW in Tocantins, and two with three plants and a total capacity of 4.7MW in the state of São Paulo. Separate financials for such companies are not yet available owing to the unbundling of the Rede Group’s generation assets from its distribution operations in November last year.
Enel expects the assets to contribute about US$34M a year to EBITDA in 2007. The closing of the transaction came after its approval by ANEEL (the Brazilian electricity authority).
Meanwhile, Enel’s acquisition of another company owning two mini hydro plants with an installed capacity of about 6MW, which was envisaged in the preliminary agreement signed last June, should take place by March 2007, as soon as the revamping work currently under way is completed.