Eletrobras concludes sale of the Candiota thermoelectric complex for R$72 million


A Eletrobras reported this Friday (8) that it concluded the signing of a contract for the sale of the Candiota thermoelectric complex (which today only has the Candiota 3 plant in operation)the group’s only coal et, for the group Âmbar Energia for R$72 million (Equity Value). The transaction is subject to adjustments and usual market conditions precedent.

This is not the first thermoelectric plant that Âmbar Energia has acquired in the State. A company, from the J&F Group, had already purchased the Uruguaiana natural gas plant in 2021which at the time was owned by Argentina’s Saesa, which in turn had taken over the venture that previously belonged to the AES Group.
Last year, another coal-fired thermoelectric plant in Candiota, Pampa Sul, was also sold, which has an installed capacity of 345 MW. The Grafito and Space X investment funds, managed by the companies Starboard and Perfin, respectively, paid R$450 million for 100% of the shares that Engie Brasil Energia held in the project.

One of the explanations for the difference in values ​​involving the Candiota 3 and Pampa Sul negotiations is the fact that the former is an older thermoelectric plant and the energy supply contract times are different. While the Candiota 3 contract ends on December 31, 2024the one in Pampa Sul ends only on December 31, 2043.

In material fact sent to the Securities and Exchange Commission (CVM), Eletrobras states that “once completed, the operation will be another important milestone for the company in its quest to reduce CO2 emissions and target net zero in 2030, as Candiota represents around a third of Eletrobras’ total emissions”. The company highlights that, based on the recorded values ​​of the Candiota thermoelectric complex in June 2023 and the value proposed for disposal, the company estimates that the transaction alone will generate an accounting impact for the company, a negative one of around R$56 million in the third quarter of 2023.

Other transactionss

In parallel and following the corporate optimization plan, Eletrobras gave more details about the evolution of two negotiations with the Âmbar Energia group for ets held jointly with Eletrobras. The first is the purchase of Âmbar Energia’s 51% stake in two transmission ets for R$574 million (Equity Value) in the SPEs Vale do São Bartolomeu (VSB) and Triângulo Mineiro Transmissora (TMT), jointly held with Eletrobras .

The two SPEs, VSB and TMT, which will have net debt close to zero on the expected date of completion of the operation, have permitted annual revenues (RAPs) approved for the 2023-2024 cycle of R$49 million and R$53 million and concessions up to October 2043 and August 2043, respectively.

“We reinforce that this negotiation is the result of an anticipation with optimization and improvements in the terms of purchase and sale options for the two ets. In these options, established in 2013, Âmbar Energia had the right to sell its respective shares to Furnas Centrais Elétricas and Eletrobras Furnas held the right to purchase the aforementioned shares. CELGpar has a period to exercise its preemptive right in VSB, in accordance with the terms of the current shareholders’ agreement”, points out the note.

The second negotiation concerns an option to purchase 51% of the six non-operational wind generation SPEs of the Baleia complex, in favor of Brasilventos Energia (BVE), a wholly owned subsidiary of Furnas, for R$1 (one real). SPEs do not have debt and have the right to receive payment in an action to collect insurance compensation. The values ​​are the subject of discussion and once established, they will benefit both shareholders (Âmbar Energia and Eletrobras), since the purchase of the et by BVE would only occur after the conclusion of the discussions and receipt from the insurance company.

According to Eletrobras, the initiatives are in line with the strategic plan, which aims to simplification of the structure, reductions in liabilities and the search for zero CO2 emissions by 2030. It is worth mentioning that Eletrobras continues with several other initiatives in line with its strategic plan, such as completing the sale of the gas thermal park, announced via a statement to the market on July 7, 2023.



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