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Engie Brasil buys two hydropower plants for $523 Million

Engie Brasil buys two hydropower plants for $523 Million

According to a filing with the Securities Commission, Engie Brasil announced on Friday that it had signed a deal to purchase two hydropower plants in northern Brazil. The price was estimated at 3 billion reais (532 million dollars).

Engie Brasil has acquired the entities that hold concessions for the Cachoeira Caldeirao Plant, located in Amapa State, and the Santo Antonio do Jari Plant, which is on the border between Amapa and Para States.

The concessions expire in 2048 and respectively 2045.

Together, the assets being sold by EDP Energias do Brasil, China Three Gorges Energia and others have 612 Megawatts of installed power.

The CFO, Eduardo Takamori, said that the transaction would create value for investors by allowing them to allocate capital into assets which are already operational with long-term revenue streams.

Engie Brasil stated that the value of the transaction, which is still subject to approval by Engie's shareholders as well as Brazilian regulators, represents 2.3 billion reais worth of equity and 672 millions reais worth in net debt.

(source: Reuters)