Brazil's Equatorial sells power transmission unit to Canadian fund-backed firm

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP

09/07/2024 16:22

SAO PAULO, July 9 (Reuters) - Brazilian energy company
Equatorial Energia  EQTL3.SA  has agreed to sell one of its
power transmission subsidiaries to a firm backed by Canadian
investment fund Caisse de Depot et Placement du Quebec (CDPQ),
the companies said on Tuesday.
    The deal for Infraestrutura Energia to buy SPE 07, which
owns transmission assets in Para state, has an enterprise value
of up to 1.19 billion reais ($218.61 million), Equatorial said
in a securities filing.
    The price tag takes in to account an equity value of up to
840 million reais and a net debt of 350 million reais, it added.
    The transaction is still pending approval from Brazilian
energy agency ANEEL and antitrust watchdog CADE.
    Equatorial already sold power transmission subsidiary Intesa
to CDPQ's Infraestrutura Energia in late 2023 for an enterprise
value of up to 714 million reais.
    The sale of SPE 07 comes as Equatorial eyes a strategic role
in Brazilian water utility Sabesp  SBSP3.SA , which is
undergoing a privatization process.
 ($1 = 5.4436 reais)
    

 (Reporting by Luana Maria Benedito in Sao Paulo
Editing by Matthew Lewis)
 ((LuanaMaria.Benedito@thomsonreuters.com; +551156447723;))