Eletrobras subsidiary Furnas has acquired the stakes held by Cemig Geração e Transmissão in Retiro Baixo Energética and Baguari Energia, in line with the company's strategic objective of simplifying its structure, growing with profitability, and reinforcing its leadership in renewables. With these acquisitions, Eletrobras will indirectly hold a 98.9% interest in the Retiro Baixo Hydroelectric Power Plant and 100% of the Baguari Hydroelectric Power Plant.
The Retiro Baixo plant, with an installed capacity of 81.1MW and 34.8 MW of physical guarantee, is located in the State of Minas Gerais on the lower course of the Paraopeba River. The Baguari plant, with an installed capacity of 140.0 MW and 81.9 MW of physical guarantee, is located in the city of Governador Valadares, also in Minas Gerais, on the bed of the Doce River. Both plants were acquired from the December 2005 auction and have a long-term contract with the ACR and GSF SP 97 insurance, which contributes to greater predictability of the Company's cash flow.
Eletrobras will acquire a 49.90% equity interest in Retiro Baixo directly held by CEMIG GT for R$200 million and a 69.38% equity interest in Baguari Energia for R$393 million, corresponding to a 34% interest in UHE Baguari.
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According to Wilson Ferreira, Eletrobras CEO, “this transaction represents another important step in the simplification of Eletrobras, reducing the number of SPEs as planned, reinforcing our presence in renewable energy, and confirming our leadership in energy transition through the efficient management of strategic assets.”
The closing of the transaction is conditioned to the fulfillment of certain conditions precedent that are common to this type of transaction, including the appropriate consents. With these acquisitions, Eletrobras, through its subsidiary Furnas, will hold the share control of Retiro Baixo and Baguari Energia, starting to consolidate them in its Financial Statements.
This acquisition will add R$79 million to EBITDA (expected 2023), for an enterprise value of R$582 million. With this operation, the company increases its proportional installed capacity by 88.5 MW and starts consolidating assets with R$202 million in EBITDA.
Eletrobras will keep its shareholders and the market in general duly informed, pursuant to applicable regulations. This acquisition is another significant step in the company's strategic objective of simplifying its structure, growing with profitability, and reinforcing its leadership in renewables.
