Statkraft signs sale agreement with EDP Brasil for 130 MW hydropower portfolio

EDP - Energias de Portugal, S.A. has announced that its 51%-owned subsidiary EDP – Energias do Brasil, S.A. has signed a sale and purchase agreement with Statkraft Energias Renováveis S.A., for the sale of all the shares held by EDP Brasil in EDP Pequenas Centrais Hidroelétricas S.A. and Santa Fé Energia S.A.

EDP Pequenas Centrais Hidroelétricas S.A. owns seven small hydroelectric power plants, while Santa Fé Energia S.A. owns one hydro power plant. These eight plants are located in Espírito Santo, a state in south-east Brazil, and altogether generate 131.9 MW capacity and physical guarantee of 68.8 MW. The respective concession contracts for the plants mature between 2025 and 2031.

The total amount of the transaction is BRL704 million (US$192.3 million), including an estimated net debt of BRL113 million (US$30.9 million). Therefore, the expected proceeds amount to BRL591 million (US$161.4 million), subject to adjustment between the signing and closing dates, common to this type of transaction.

The completion of this transaction is subject to the verification of precedent conditions, namely: i) the approval of the Brazilian Antitrust Authority (CADE); and (ii) the approval of the Brazilian Electricity Regulatory Agency (ANEEL).