Neoenergia sold a 75% stake in the Dardanelos Hydroelectric Plant to EDF Brasil for R$ 2.2 billion, with plans for EDF to potentially acquire the remaining stake within two and a half years.

Target Information

The deal entails the sale of a 75% stake in the Dardanelos Hydroelectric Plant, located in Mato Grosso, Brazil, from Neoenergia to EDF Brasil Hidro Participações S.A. The Dardanelos Plant has an installed capacity of 261 MW and is capable of supplying energy to approximately 1.4 million people. Following the transaction, Neoenergia will retain a 25% stake through the establishment of a new entity.

The transaction value is set at R$ 2.2 billion, with an updated enterprise value of R$ 2.5 billion as of the date of signing, subject to adjustments typically associated with such deals. The deal includes a provision allowing EDF Brasil Holding the right to acquire Neoenergia's remaining 25% stake within two and a half years after the transaction’s completion.

Industry Overview

The Brazilian energy sector is characterized by a diverse mix of energy sources, with hydroelectric power contributing significantly to the national generation capacity. In recent years, Brazil has prioritized the expansion of renewable energy p