Centrais Elétricas Brasileiras S/A (“Companhia” ou “Eletrobras”) (B3: ELET3, ELET5 & ELET6; NYSE: EBR & EBR.B; LATIBEX: XELT.O & XELT.B) informs its shareholders and the market in general that, on this date, the acquisitions, by its subsidiary Furnas, of the stakes that Cemig Geração e Transmissão S/A (“CEMIG GT”) holds in Retiro Baixo Energética S.A. (“Retiro Baixo”) and Baguari Energia S.A. (“Baguari Energia”).
The acquisitions are in line with Eletrobras’ strategic objective, simplifying its structure, growing with profitability and reinforcing its leadership in renewables. With the completion of the 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 Hydroelectric Plant is located on the lower course of the Paraopeba River, between the municipalities of Curvelo and Pompéu, in the State of Minas Gerais, with an installed capacity of 81.1MW and 34.8 MW of physical guarantee. The Baguari1 Consortium operates the Baguari Hydroelectric Plant, located on the bed of the Doce River, in the city of Governador Valadares, in the State of Minas Gerais, with an installed capacity of 140.0 MW and 81.9 MW of physical guarantee.
The two UHEs came from the December 2005 auction, have a long-term contract with the ACR and have GSF SP 97 insurance, which contributes to greater predictability of the Company’s cash flow.
The above operations consist of the acquisitions of: (i) 49.90% equity interest in Retiro Baixo, for R$ 200 million, directly held by CEMIG GT; and (ii) 69.38% equity interest in Baguari Energia, for R$ 393 million. This participation corresponds to a 34% interest in UHE Baguari.
According to Wilson Ferreira, CEO of Eletrobras: “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 such acquisitions, Eletrobras, through its subsidiary Furnas, will now hold the share control of Retiro Baixo and Baguari Energia, starting to consolidate them in its Financial Statements. Thus, it will proportionally add R$79 million to EBITDA (expected 2023), for an enterprise value (Enterprise Value) of R$ 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.
The Company will keep its shareholders and the market in general duly informed, pursuant to applicable regulations.
