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Enel's Brasilian company to buy Celg Distribuição

Staff Writer |
Enel said that its subsidiary Enel Brasil got a green light by the Brazilian national development bank (BNDES) to buy approximately 94.8% of the share capital of Celg Distribuição (CELG).

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CELG is an energy distribution company that operates in the Brazilian state of Goiás.

The financial offer presented by Enel Brasil was worth 2.187 billion Brazilian reais or about $640 million.

After the purchase of CELG, Enel Group's client base in Brazil is expected to increase to 10 million, from 7 million.

At the same time, Enel Group's customers at global level are expected to increase to approximately 65 million from the current 62 million.

The signing and closing of the purchase agreement are both expected to take place in the first quarter of 2017, following approval from antitrust authority CADE and electricity regulator ANEEL.

After closing of the purchase of approximately 94.8% of the company's share capital, a residual stake of around 5.1% of CELG will be offered to the company's current employees and retired employees, through a process that will allow Enel Brasil to purchase the shares not bought by current employees and retired employees.

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