CPFL Energia S.A. and Equatorial Energia S.A. cancelled the acquisition of a stake in Rede Energia S.A. from Jorge Queiroz de Moraes Junior and other shareholders.
July 05, 2013 at 12:00 am EDT
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CPFL Energia S.A. (BOVESPA:CPFE3) and Equatorial Energia S.A. (BOVESPA:EQTL3) entered into an memorandum of understanding to acquire stake in Rede Energia S.A. (BOVESPA:REDE4) from Jorge Queiroz de Moraes Junior and other shareholders for BRL 2.6 billion on October 11, 2012. The purchase price of BRL 1.8 billion will be paid to the creditors of Rede Energia and BRL 773 million will be paid as fresh investment. Moraes will transfer its direct and indirect stake in Rede and its distribution subsidiaries to Equatorial for BRL 1. The transaction is subject to approvals from the relevant public bodies and certain creditors and investors, under the law, contracts and shareholder agreements applicable, the results of an audit to be conducted by the Group, the approval of the recovery plan to be presented to ANEEL, approval of national antitrust regulator Cade and the celebration of agreements with creditors of Rede Energia and Group companies.
As on December 19, 2012, sale and purchase agreement is signed with Jorge Queiroz de Moraes Junior. On January 8, 2013, it was announced that the acquisition of Rede Energia is expected to close by June 2013. CPFL Energia and Equatorial Energia have 60 days to present an offer to Rede's creditors and the creditors have 120 days to respond. As of May 12, 2013, the deal is expected to close by July 2013.
As of June 13, 2013, Companhia Paranaense de Energia announced that it has abdicated from offering to acquire the assets of Grupo Rede, in view of the tight deadlines for submission of the final proposal and the financial discipline provided for in the Companhia Paranaense investment policy. Raquel Otranto Colangelo, Luís Gustavo Haddad, Bruno Robert, Ana Carolina Barbuio Rogerio Carmona Bianco and Luiz Felipe Pereira Gomes Lopes of Lilla, Huck, Otranto, Camargo Advogados and Thomas Benes Felsberg, Joel Luís Thomaz Bastos, Bruno Kurzweil de Oliveira and Paulo Fernando Campana Filho of Felsberg, Pedretti e Mannrich Advogados acted as legal advisors for Rede. Eduardo Secchi Munhoz, Marcelo Sampaio Góes Ricupero, Rafael Medeiros Mimica, Ana Luisa Vasconcellos Absy, Manoela de Barros Pimentel Penteado de Almeida and Carolina Amadeu Vasconcelos of Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados acted as legal advisor for Equatorial Energia and Ricardo de Lima Assaf, Paloma Valeria Martins Lima and Ana Carolina Katlauskas Calil of Machado, Meyer, Sendacz e Opice Advogados acted as legal advisors for CPFL Energia S.A.
CPFL Energia S.A. (BOVESPA:CPFE3) and Equatorial Energia S.A. (BOVESPA:EQTL3) cancelled the acquisition of a stake in Rede Energia S.A. (BOVESPA:REDE4) from Jorge Queiroz de Moraes Junior and other shareholders on July 5, 2013. The transaction was called off by Jorge Queiroz de Moraes Junior.
Rede Energia Participacoes SA, formerly Rede Energia SA, is a Brazil-based holding company engaged in the electrical energy sector. Together with its subsidiaries, the Company is active in the generation, distribution and commercialization of electrical energy, as well as other activities related to electricity sector. It operates in the generation sector through the hydroelectric power plant Guapore, owned by the subsidiary Tangara Energia SA, located in municipalities of Vale de Sao Domingos and Pontes e Lacerda, in the Brazilian state of Mato Grosso. The Company operates in the distribution sector through nine companies, including Centrais Eletricas Matogrossenses SA, among others. Through the subsidiary Rede Comercializadora de Energia SA, the Company is active in the intermediation and negotiation of energy contracts with generators, suppliers and free consumers. The Companyâs subsidiary, Rede Eletricidade e Servicos SA, provides services related to the electrical energy sector.
CPFL Energia S.A. and Equatorial Energia S.A. cancelled the acquisition of a stake in Rede Energia S.A. from Jorge Queiroz de Moraes Junior and other shareholders.
REDE ENERGIA PARTICIPAÇÕES S.A. 
