Eletrobras and Iberdrola exchange shares for 148 million dollars

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Brazilian power companies Neoenergia and Eletronorte, a subsidiary of utility Eletrobras, agreed on Friday to swap stakes worth 787.8 million reais ($148 million) in deals involving hydroelectric plants.

Under the agreement, Neoenergia — controlled by Spain’s Iberdrola (BME:IBE) SA— will acquire a 49% stake in the Dardanelles hydroelectric power plant, and 0.04% in Neoenergia Coelba, Neoenergia Cosern and the transmission company Afluente T.

Eletrobras, in turn, will take 51% of the Teles Pires hydroelectric plant, which will give it full ownership of the company, plus Neoenergia’s 51% stake in the consortium building the UHE Baguari hydroelectric plant.

In this way, Eletrobras would own 66% of the assets of UHE Baguari, as reported in a joint statement with Neoenergia.

The transaction is subject to the approval of creditors and Brazilian competition regulator CADE.

($1 = R$5.3140)

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