Brazilian energy firm Eneva reaches deal to acquire Focus Energia

SAO PAULO, Dec 15 (Reuters) - Brazilian energy company Eneva SA (ENEV3.SA) announced on Wednesday it has reached an agreement to acquire Focus Energia (POWE3.SA) and take the renewable energy firm private only afew months after its initial public offering(IPO).

Eneva will pay 715 million reais ($125.92 million) in cash on the closing date of the deal and buy non-convertible debentures issued by Focus, according to a securities filling.

Focus will cease to exist after being incorporated by a new subsidiary of Eneva, which will then merge with Eneva itself. Focus shareholders will receive 0.189616054 of a share of Eneva for each Focus share, with the buyer issuing a total of 17 million new shares.

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Eneva, which made a failed bid to buy AES Tiete Energia SA, a company that was acquired by AES Corp last year, had already flagged its intentions to bet on the renewable energy generation market.

"We believe that, with the incorporation, we have an opportunity to bring in an asset that will accelerate the implementation of Eneva's strategy as an integrated energy solutions player," Eneva Chief Executive Officer Pedro Zinner said in a statement.

Shares in Eneva were up 4.5% in morning trading on the Sao Paulo stock exchange, while shares in Focus Energia were 6.2% higher.

Approval by Brazil's antitrust regulator and by shareholders of both companies is pending. The deal is expected to be implemented by the middle of April in 2022, but the deadline could be extended for an additional three months.

($1 = 5.6780 reais)

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Reporting by Peter Frontini and Letícia Fucuchima, Editing by Louise Heavens and Paul Simao

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