Brazilian power company Equatorial agrees to buy Enel’s Celg-D

A logo of Italian multinational energy company Enel is seen at the Milan headquarters, Italy, February 5, 2020. REUTERS/Flavio Lo Scalzo

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SAO PAULO, Sept 23 (Reuters) – Brazilian power company Equatorial Energia SA (EQTL3.SA) has agreed to acquire Celg-D, a local electricity distribution company owned by Italy’s Enel SpA (ENEI.MI), a securities filing showed on Friday .

Equatorial will pay 1.58 billion reais ($309 million) for Celg-D in a deal that also includes a 5.71 billion-real debt restructuring, it said.

Reuters had reported earlier this year, citing sources, that Enel was in talks to sell Celg-D, which distributes power to 3.3 million customers in Brazil’s center-west state of Goias. read more

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Enel paid 2.1 billion reais to buy Celg-D from the state and Eletrobras (ELET6.SA) in a privatization in 2016.

Celg-D said in a separate filing on Friday that Equatorial aims to expand its footprint in power distribution and diversify its portfolio.

The deal still requires approval from Brazil’s antitrust watchdog CADE and power regulator Aneel, the firms said.

($1 = 5.1171 reais)

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Reporting by Gabriel Araujo; editing by Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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