China's State Grid completes tender offer to fund CPFL Energias Renovaveis stakes acquisition

State Grid Corporation of China has completed its launched public tender offer to fund the acquisition of stakes it does not own in Brazil's CPFL Energias Renovaveis.

The company intends to acquire  243.8 million shares that represent 48.39% of the capital stock of CPFL for BRL16.85 (US$4.54) per share or a total of about BRL4.1 billion (US$1.1 billion).

CPFL Energia S.A., together with its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. The company generates electricity through wind, biomass-powered thermal, solar, and hydroelectric power plants. It also manufactures, commercializes, rents, and maintains electro-mechanical equipment; and offers administrative, call center, collection, IT, telecommunication, energy transmission, and energy efficiency management services, as well as maintenance services for energy generation companies.

As of December 31, 2016, the company distributed electricity to approximately 9.1 million customers; and had 315,538 kilometers of distribution lines, which included 450,247 distribution transformers. It also has an installed capacity of 3,259 megawatts.

State Grid has been a majority holder in CPFL and its renewables unit CPFL Energias Renovaveis since January 2017.