France-based Suez, through its South American unit Energy South America (SESA), has bought a controlling stake in US-based Econergy International through a public offer.
The total value of the stake is US$225 million. Econergy’s shareholders, accounting for 94.4 per cent of the firm’s issued shares, accepted SESA’s offer of US$90 cents per share on 29 June.
It is one of the first transactions in which a Brazilian company successfully concluded a public acquisition offer on the London Stock Exchange’s Alternative Investment Market (AIM).
SESA’s bid was made on 13 June, trumping an earlier offer for Econergy by rival developer Trading Emissions. Econergy had run short on funds to develop its project pipeline, and the SESA offer included loan facilities for up to US$50 million if it secured more than 50 per cent of the company’s shares.
The acquisition is part of Suez’s strategy to expand its renewable development capabilities. These will now include a hydroelectric plant and two wind farm projects in Brazil.
Econergy is a renewable energy and carbon project developer. The core businesses of the company are greenfield generation projects and carbon emissions trading. It has investments in Brazil, Costa Rica, Bolivia, Mexico and the US.
Counsel to Suez Energy South America Participações
Machado, Meyer, Sendacz e Opice Advogados
Partner José Virgílio Lopes Enei and associates Ricardo de Lima Assaf, Arthur Bardawil Penteado, Luana Yoko Komatsu, Natália Camargo Barros, and Tassia Mielniczenko Penteado de Aguiar
• Norton Rose
Partner James Stonebridge and associate Fay Holden
Counsel to Econergy
• Mundie e Advogados
Associate Rafael D'Ávila
• Reed Smith LLP
Partners Giles Beale, Mike Young, Saul Sender, Richard Shine and Bob Smith
(Latin Lawyer 20.08.2008)