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State Grid buys $3.4 bln in CPFL from minority shareholders
November 30, 2017 / 10:57 PM / 14 days ago

State Grid buys $3.4 bln in CPFL from minority shareholders

SAO PAULO, Nov 30 (Reuters) - China’s State Grid Corp bought 11.3 billion reais ($3.45 billion) of shares in CPFL Energia SA from minority shareholders on Thursday, the B3 stock exchange said, as the Chinese firm moved to delist the Brazilian power holding company.

Eletrobras Participações SA, which holds the investments of state-run utility Centrais Eletricas Brasileiras SA, sold all its 1.8 million shares in CPFL Energia SA, Eletropar said in a statement.

State Grid bought a controlling stake in CPFL Energia in January and tendered the buyout offer so it could delist the company, the country’s third biggest electric utility.

Anticipating its delisting, CPFL´s stock price plummeted 16.97 percent, leading losses on the Ibovespa index, which closed 1 percent down.

B3 SA Brasil Bolsa Balcão said 408.5 million shares were traded at 27.69 reais a share. State Grid had offered to buy the shares at 25.51 reais a share in October, and the price was adjusted by benchmark Selic interest rate. ($1 = 3.2726 Brazilian reais) (Reporting by Flavia Bohone and Aluísio Alves; Writing by Anthony Boadle; Editing by Andrew Hay)

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