Enel reaches a 93.3% stake in Eletropaulo, consolidates its control of the Brazilian company 

Published on Wednesday, 18 July 2018

“Today’s announcement, which is a pleasing result in this final step of the Eletropaulo acquisition, marks another milestone in the execution of our strategy in Latin America. Through Enel Americas, the Group continues to strengthen its position in the region as an integrated leader in the major markets on the continent, of which Brazil is undoubtedly the largest. Eletropaulo is a quality asset, which will benefit greatly from our technical expertise and experience, as we drive value creation for all stakeholders, growing in the free market and in new digital services for clients”

– Francesco Starace, Enel CEO and General Manager

Enel Sudeste's investment to acquire the above overall stake amounts to about 7,069 million Brazilian reais, equal to around 1,571 million euros at current exchange rates.

In addition to the above figure, the transaction also includes the amount required to support Enel Sudeste's commitment to subscribe its pro rata – as well as any unsubscribed portion – of a forthcoming capital increase of Eletropaulo in the amount of at least 1,500 million Brazilian reais, equal to about 333 million euros at current exchange rates. On June 26th, 2018, Enel Sudeste carried out an advance payment for Eletropaulo's capital increase in the amount of 900 million Brazilian reais, equal to about 200 million euros at current exchange rates.

Finally, as of June 26th, 2018, the Brazilian energy authority (Agencia Nacional de Energia Elétrica or “ANEEL”) announced the approval of the acquisition of control of Eletropaulo by Enel Sudeste following the favourable outcome of the above voluntary tender offer.