Under the terms of the agreement, EDB - which is 64.6% owned by Energias de Portugal - will swap the total share capital it owns in electricity distribution company Enersul with the company shareholdings owned in Rede Lajeado Energia and Investco by Rede Energia, as well as shareholdings owned in Rede Lajeado and Tocantins Energia by Rede Power.
This agreement gives EDB a 73% voting stake in Investco, giving the company control over the Lajeado plant, which is currently operated under a concession contract with the duration of 35 years (with maturity in December 2032), with electricity generated sold under energy long term sale contracts with Grupo Rede's distribution companies.
This operation is in line with EDP's strategic targets to balance Brazil's assets portfolio, through the exposure expansion, in the energy generation sector.
The agreement is subject to approval by the Brazilian energy sector regulator, ANEEL, and to other contractual and governance procedures as result of the handover of the management control of the companies involved in the agreement.
