Germany's E.ON agrees to increase stake in Brazil's MPX

SAO PAULO, March 28 Thu Mar 28, 2013 8:49am EDT

SAO PAULO, March 28 (Reuters) - Germany's E.ON SE agreed to increase its stake in Brazilian power producer MPX Energia SA, buying a quarter of the company from controlling shareholder Eike Batista and participating in a capital injection of up to 1.2 billion reais ($596 million).

E.ON will subscribe for 367 million reais of new shares and purchase a 24.5 percent stake from Batista for 10 reais to 11 reais each, according to a Thursday securities filing, bringing the German company's total stake in MPX to 36 percent.