The China State Grid group plans to launch a tender offer for the remaining capital of Brazilian company CPFL Energia that it does not yet control, under a plan to remove shares from the stock market, CPFL Energia said in a statement to the market.
The Chinese group, which in January increased its stake to 54.64 percent of CPFL Energia and its subsidiary CPFL Energias Renováveis, having paid 17.36 billion reais (USD5.68 billion), announced it was offering 25.51 reais per share that it does not yet own.
China State Grid’s plan will lead shares of CPFL Energia to no longer be listed on the New York and Sao Paulo stock exchanges, the Brazilian company said in its statement.
CPFL Energia is the main non-state producer of electricity in Brazil and the third largest in the country, with a 14.3 percent market share, supplying electricity to millions of people and being particularly active in energy production from renewable sources.
In turn, the Chinese group, which in Brazil already controls a power transmission network of about 10,000 kilometers, entered the Brazilian market in 2010. In 2016 its local subsidiary won an auction to manage two new transmission lines. MDT/Macauhub