ENEL Enel Spa

Adds context, details on tender.

 
   By Alberto Delclaux 
 

Enel Spa (ENEL.MI) has won the bidding war for Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A (ELPL3.BR), increasing its previous offer and beating rival Iberdrola SA (IBE.MC), with a bid that values the Brazilian utility at slightly more than $2 billion.

Enel increased its offer to 45.22 Brazilian reais ($12.12) per share overnight Wednesday, shortly before a deadline for new bids passed. Its increase followed a similar move by Spanish rival Iberdrola, which raised it to BRL39.53. Enel's previous offer price was BRL32.20, slightly over Iberdrola's at BRL32.10.

Enel's tender offer for the Eletropaulo will take place on June 4 and is conditional on the acceptance of shareholders representing more than 50% of the capital. According to regulations, Enel's offer can no longer be modified.

Enel and Iberdrola have been locked in a bidding war for the Sao Paulo-based energy distributor since April 17, successively raising their bids in a battle to get a better foothold in the Brazilian electricity market.

Enel said Thursday that if all shareholders agree to the offer, its investment would amount to about BRL7.57 billion ($2.03 billion). Moreover, it said it would spend at least an additional BRL1.5 billion to subscribe to a capital increase at Eletropaulo.

As a result of the acquisition, Enel said it would add seven million new customers in Brazil, making it the largest operator in the country.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

May 31, 2018 03:44 ET (07:44 GMT)

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