Engie Brasil details Jirau stake deal, to be funded by $1.13 billion capital increase

SAO PAULO, June 17 (Reuters) - Engie Brasil ENGIE3.SA detailed in a securities filing late on Tuesday the terms of a deal to acquire a 40% stake in the Jirau hydroelectric power plant from its controlling shareholder, Engie Brasil Participacoes, part of France's Engie ENGIE.PA.

  • The company said the deal will be funded by a capital increase of about 5.74 billion reais ($1.13 billion) through a share offering tied to the asset contribution.

  • The share offering could raise up to 8.36 billion reais including an additional allotment, the company said.

  • The related-party transaction values the stake at about 5.37 billion reais, representing a roughly 5% discount to the midpoint of an independent appraisal.

  • The company's board has approved the operation, with minority shareholders set to vote at an extraordinary meeting on July 2.

  • Jirau, located on the Madeira River in Brazil's Amazon region, has installed capacity of 3,750 megawatts.

  • The asset is expected to generate more than 20 years of predictable cash flows, supported by long-term contracted revenue, according to Engie Brasil.

  • Engie Brasil has for years been considering the acquisition of its controlling shareholder's stake in Jirau.


($1 = 5.0929 reais)


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