Press Release Archive - ENGIE Brasil

On Monday, December 23, ENGIE Brasil Energia executed an agreement for the purchase of 100% of the stock of Sterlite Novo Estado Energia S.A., the holder of a concession for the construction, operation and maintenance of 1,800 kilometers of transmission lines in the states of Pará and Tocantins. The BRL 410 million deal also includes construction of a new substation and upgrades to three existing substations in the two states.

“The acquisition aligns with the company’s strategy of positioning itself as one of the main players in the Brazilian energy infrastructure sector,” said Chief Executive and Investor Relations Officer of ENGIE Brasil Energia, Eduardo Sattamini. “We see an opportunity to expand our Brazilian operations in the transmission segment, which, with reinforcements in the form of new transmission lines, improves the sector’s energy efficiency – one of ENGIE’s basic investing assumptions,” Sattamini explained. “We will keep the shareholders and the market at large abreast of developments on this front and any others that are relevant to the marketplace,” the executive added.

The operation has received the approval of ENGIE Brasil Energia’s Board of Directors. Completion is contingent on approval by the National Electric Energy Agency (Aneel). In December 2017, Sterlite Participações, Novo Estado’s controlling shareholder, placed a winning bid for Lot 3 in Aneel’s transmission auction, which concerned the project to be built in the North region of Brazil. All installation licenses have already been secured and construction works are set to begin in 2020.

This will be ENGIE’s second transmission project in Brazil. In December 2017, the Company won Lot 1 of the Auction mentioned earlier, for the construction of one thousand kilometers of transmission lines, five new substations and the expansion of another five in the state of Paraná. At over BRL 2 billion in investments, construction of the “Gralha Azul” project is already underway and is expected to generate up to 5 thousand direct jobs at peak employment.

The Novo Estado acquisition is yet another infrastructure deal for ENGIE in 2019, a year marked by the Company’s entry into the Brazilian natural gas segment with the acquisition of TAG.