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Shareholders in CPFL Renovaveis in dispute with China's State Grid
October 20, 2017 / 1:00 PM / 2 months ago

Shareholders in CPFL Renovaveis in dispute with China's State Grid

SAO PAULO/BRASILIA, Oct 20 (Reuters) - Minority shareholders in the renewable energy unit of Brazil´s power holding company CPFL Energia SA are questioning the price offered by State Grid Corp of China to buy out minority shareholders in the unit, newspaper Valor Economico reported on Friday.

A group of minority shareholders that include funds managed by Patria Investimentos Ltda, Germany’s DEG Deutsche Investitions and the International Finance Corporation, the investment arm of the World Bank, filed a complaint with Brazil’s securities regulator CVM questioning the price set by State Grid to buy out minority shareholders in CPFL Energias Renováveis SA , citing documents filed with the regulator.

State Grid’s offer to minority shareholders of parent CPFL Energia had a higher premium over market prices that was not applied in the offer price for shareholders in the renewable unit, the group says in their complaint, according to the paper.

Regulator CVM declined to comment. Patria, IFC, DEG and State Grid did not immediately comment.

The acquisition of power holding company CPFL by State Grid was the largest deal in Brazil last year. State Grid took formal ownership of the Brazilian company in January. (Reporting by Tatiana Bautzer in Sao Paulo and Jake Spring in Brasilia; Editing by Andrea Ricci)

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