E.ON SE acquired 24.5% of MPX’s equity from Eike Batista, owner and CEO of EBX. E.ON acquired 141,544,637 shares of MPX stock for a minimum price of EUR 3.921 per share, plus up to a further EUR 0.391 per share, depending upon the final settlement price of a planned capital increase and the share price performance of MPX in the six months following the closing of the transaction. This raises E.ONs total stake in the Brazilian energy company to 36.2%. This transaction where E.ON invested up to a total of EUR 0.6B is the first step of the investment agreement the two companies signed in March 2013.
In the second step, MPX will carry out a public capital increase of EUR 0.5B. E.ON has committed to investing EUR 0.1B. E.ON and MPX expect the capital increase to take place this summer.
In the third and final step, the MPX-E.ON 50:50 joint venture company created in April 2012 will be reintegrated into MPX at book value, with E.ON receiving shares equivalent to the value of its joint venture stake. E.ONs stake in MPX will finally be around 36.1%.
E.ON CEO Johannes Teyssen said of the deal, “The closing of the first step of our investment agreement increases our engagement in Brazil’s attractive power market at a fair price.” “The strength brought by E.ON will turn MPX into an even more efficient and distinct company”, said Eike Batista, President of EBX Group and MPX’s Chairman of the Board.
