- Enel Sudeste has increased the price of the voluntary tender offer for Eletropaulo from 28.0 to 32.0 Brazilian reais per share
- Eletropaulo board cancels ongoing capital increase
Rome, April 26th, 2018 – Enel S.p.A.’s subsidiary Enel Brasil Investimentos Sudeste, S.A. (“Enel Sudeste”) announced that it has improved the terms of its voluntary tender offer (the “Offer”) for the acquisition of the entire share capital of Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (“Eletropaulo”), launched on April 17th, 2018, by increasing the price per share from 28.0 to 32.0 Brazilian reais.
Under the terms of the improved Offer, the overall investment is therefore expected to total up to approximately 5.4 billion Brazilian reais, equal to around 1.3 billion euros at the current exchange rate.
This price increase confirms the willingness of Enel Sudeste to continue to participate in a competitive, transparent and fair tender process for the acquisition of control over Eletropaulo.
Shortly after the announcement of this price increase by Enel Sudeste, Eletropaulo announced that its board of directors decided to cancel the ongoing capital increase. This decision fulfils one of the conditions to which the Offer was subject and allows competition amongst the concurring offers for the control of the company to move forward.
To facilitate such decision and to address Eletropaulo’s concerns on the ability of the company to raise funds at a later stage, Enel Sudeste had committed to subscribe a subsequent capital increase of Eletropaulo for at least the same amount (i.e. for at least 1.5 billion Brazilian reais, equal to approximately 355 million euros at the current exchange rate) if the Offer is successful or if neither the Offer nor any concurring offer becomes successful, as previously announced to the market on April 19th and April 23rd, 2018.
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.
For the dissemination to the public and the storage of regulated information made available to the public, Enel S.p.A. has decided to use respectively the platforms “eMarket SDIR” and “eMarket Storage”, both available at the address www.emarketstorage.com and managed by Spafid Connect S.p.A. with registered office in Milan, at Foro Buonaparte, 10. The aforementioned services are authorized by Consob (resolution No.19878 of February 15th, 2017, related to the mechanism for the dissemination to the public of regulated information “eMarket SDIR” and resolution No. 19879 of February 15th, 2017, related to the mechanism for the central storage of regulated information “eMarket Storage”).
From May 19th 2014 to June 30th 2015, Enel S.p.A. used the authorized mechanism for the storage of regulated information denominated “1Info”, available at the address www.1info.it, managed by Computershare S.p.A. with registered office in Milan and authorized by Consob with resolution No. 18852 of April 9th, 2014.