Enel Sudeste and Iberdrola challenge each other to win the Eletropaulo Metropolitana Eletricidade de Sao Paulo. On April 17, Enel, through its Brazilian subsidiary Enel Brasil Investimentos Sudeste launched a voluntary public offering (Opv) to acquire the entire share capital of Eletropaulo for a consideration of 28 Brazilian reais per share; the offer is conditional on the acquisition of a number of shares representing more than 50% of the share capital and on the postponement of the capital increase scheduled for the Brazilian company. The initially envisaged commitment was 1,1 billion euros, corresponding to approximately 4,7 billion reais.
But in view of the relaunch that Iberdrola could make today, which is contending for the Brazilian manager, Enel Sudesta has raised its offer by undertaking to support and underwrite in advance the capital increase of 1,5 billion reais, equivalent to around 355 million reais.
The reasons for the relaunch can be found in the dispute between Enel, present in Spain with Endesa, and the competitor utility Iberdola and in the fact that the Brazilian government, owner of 24% of the capital of Eletropaulo, wants to play its cards in the best possible way, aiming to strengthen assets of the local distribution company before selling it.
