Eneva completes R$2.3 billion capital increase via share subscription

By Caroline Salls

Pittsburgh, Nov. 6 – Brazil’s Eneva SA completed an R$2.3 billion capital increase on Thursday through the subscription of 15,336,875,991 new common shares issued by the company at an issuance price of R$0.15 per share, according to a news release.

Eneva said the capital increase allows the capitalization of credits and investment of assets, strengthening and equating its capital structure.

“The approval of the company’s capital increase represents the final stage of our judicial recovery plan, which was fully implemented,” chief executive officer Alexandre Americano said in the release.

“This step further reinforces the management’s commitment for the company to resume its financial stability and structured growth.”

The company said the capitalization approved by an extraordinary shareholders meeting held on Aug. 26 consolidates the proposals set out in Eneva’s judicial recovery plan.

The subscription and payment of the capital increase have been made through the contribution of assets, totaling R$1.3 billion, the conversion of 40% of financial creditors’ debt into Eneva shares in the amount of R$983 million, which, together with the reduction of 20% of the debt enrolled in the judicial recovery, reduced the company’s debt to roughly R$1 billion from R$2.4 billion, and a R$9.1 million cash contribution.

In addition, Eneva said the contribution of assets provided for in the judicial recovery plan has enabled it to hold 100% interest in BPMB Parnaiba and in Eneva Participacoes, and increase its presence in Parnaiba Gas Natural, to 27.3% from 18%.

The company said it will also now control 100% of the thermoelectric plants Parnaiba I, Parnaiba III and Parnaiba IV.

All assets contributed will foster cash generation and the company’s strategic positioning, the release said.

With the conclusion of the capital increase, neither individual nor group shareholders concentrate more than 50% of the company’s shares, making Eneva a company without controlling shareholders.

The company said the new shareholder composition includes Banco Pactual SA, with 49.57% ownership; E.ON, with 12.25%; Itau Unibanco SA, with 11.65%, and Ice Canyon LLC, with 6.8%.

Eneva is a Rio de Janeiro-based power generation company.

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