As per the new offer, Enel proposes to pay BRL32.2 ($9.26) per each share of Eletropaulo to the Brazilian firm’s shareholders.
Originally, the Italian energy company had offered to pay BRL32.0 ($9.21) per each share of the Brazilian power distribution company in a deal worth around BRL4.7bn (€1.1bn).
Enel, in a statement, said: “The Offer remains conditioned, among other things, upon the acquisition of a total number of shares representing more than 50% of the share capital of Eletropaulo.”
The Italian firm had launched the two voluntary tender offers through Enel Brasil Investimentos Sudeste, which is owned by its Brazilian subsidiary Enel Brasil.
However, Enel faces competition from Spanish energy company Iberdrola’s subsidiary Neoenergia, which has also sweetened its offer to acquire Eletropaulo, as reported by MarketWatch.
As per a regulatory filing, Neoenergia has raised its offer to BRL32.10 ($9.21) compared to its previous offer of BRL29.4 ($8.46) per each share of Eletropaulo.
Eletropaulo, which is based in Barueri, is among the largest electricity distributors in Brazil. The private power utility delivers power to more than 18 million customers in 24 municipalities in the São Paulo metropolitan region.
The Rio de Janeiro-based electric services company Energisa is the majority owner of Eletropaulo, which was founded way back in 1899.
Enel is looking to acquire the Brazilian power utility to boost its footprint in the Brazilian power distribution sector.
The proposed acquisition by Enel will be subject to approval from the Brazilian energy regulator – Agência Nacional de Energia Elétrica (ANEEL).
Enel also said that the exercise of the voting rights of the shares to be bought on its behalf by Enel Sudeste in Eletropaulo will be subject to approval from the Brazilian antitrust authority, Administrative Council for Economic Defense (CADE).
