Neoenergia to acquire additional shares in Neoenergia Cosern in strategic expansion
In a notable development in the Brazilian energy sector, Neoenergia, through its Brazilian subsidiary, has initiated a significant move to strengthen its position within its subsidiary, Neoenergia Cosern. Announced to the Brazilian Securities Commission (CVM), Neoenergia has launched a bid for the acquisition of an additional 6.89% of Neoenergia Cosern’s capital. This move will increase its shareholding from the current 93.11% to a more consolidated ownership. The bid encompasses both ordinary shares and Class A and Class B preferred shares, indicating a strategic push to simplify the shareholding structure of its distribution companies, akin to its previous acquisition strategy with Neoenergia Pernambuco in 2022.
The proposed acquisition, valued at 163 million Brazilian reais (approximately 30 million euros at the current exchange rate), targets around 11.5 million outstanding shares. The pricing set for the ordinary shares is 13.73 Brazilian reais each, with Class A and B preferred shares priced at 15.10 Brazilian reais. This investment is poised to streamline the company’s shareholding in its distribution entities, enhancing operational efficiencies and shareholder value. The transaction’s completion is anticipated by the end of the year, pending necessary regulatory approvals and the acceptance of at least two-thirds of the target shareholders.
Neoenergia Cosern, with a history dating back to 1961 and having transitioned from state to private control in 1997, has demonstrated a continuous evolution in service quality to the residents of Rio Grande do Norte. The company’s efforts to improve customer relations and contribute to the state’s development have been noteworthy. With a service reach across 167 municipalities and a concession area of 53,000 square kilometers, Neoenergia Cosern serves 1.5 million customers, impacting over 3.5 million inhabitants.
This acquisition not only underscores Neoenergia’s commitment to consolidating its distribution network in Brazil but also reflects its strategic intent to simplify its operational structure. By reinforcing its stake in Neoenergia Cosern, Neoenergia is poised to further its leadership in the Brazilian energy market, enhancing its service quality and operational efficiency. This strategic move signals a continued focus on growth and development within the energy sector, reinforcing its dedication to both shareholder value and customer satisfaction.