RIO DE JANEIRO (Reuters) - Brazilian electricity company Energisa (ENGI11.SA) said on Thursday its board has approved a bid to buy Eletropaulo, Brazil’s largest power distribution company, for 19.38 reais per share.
Energisa is offering to buy up to 100 percent of the company and has promised to raise at least 1 billion reais ($298.98 million) in capital for the power company if its offer is successful.
The cost of the acquisition would be a maximum of 3.24 billion reais, according to Energisa, which has contracted a line of credit from Citibank to finance the offer.
Eletropaulo shares closed up nearly 5 percent at 19.27 reais per share on Thursday.
Reporting by Alberto Alerigi; Editing by Sandra Maler