Dec 19 Equatorial Energia will gain a
controlling stake in troubled power company Grupo Rede Energia
under an agreement between the two companies and CPFL
Energia, according to a securities filing by CPFL on
Equatorial acquired control for the token value of 1 real.
CPFL and Equatorial, both holding companies with power
concessions in multiple Brazilian states, will make the
necessary investment to restore Rede Energia's financial
viability, the filing said.
Debt-laden Rede Energia has been in turmoil since Brazilian
energy regulator Aneel seized eight of its units in August in an
effort to prevent a halt in electricity service in six states.
The units, power distributors spread throughout
the country, are all suffering from serious financial and
The filing did not detail the stake CPFL will have in Grupo
Rede. The agreement is subject to authorization from regulator
Aneel and approval by Brazil's Economic Defense Council (CADES),
as well as Grupo Rede's creditors.
Equatorial in September agreed to acquire Celpa, the only
Rede Energia unit the regulator had not seized. Celpa, a power
distributor in the northeastern state of Para, was already under
bankruptcy restructuring when the regulator seized the other