Fram Capital agreed to acquire Brazil-based Jorge Lacerda Thermoelectric Complex from ENGIE Brasil Energia for up to BRL325m.
(ENGIE) Following approval by the Company’s Board of Directors, on August 30th, the management of ENGIE Brasil Energia signed an agreement with FRAM Capital for the sale of the Jorge Lacerda Thermoelectric Complex located in Capivari de Baixo, in the South of the State of Santa Catarina. The Complex has a total annual installed capacity of 857 MW.
The transaction is taking place 6 months after the beginning of the exclusivity period granted to FRAM Capital to effect its due diligence on the asset. The selling price for a 100% equity stake in the controlled company Diamante Geração de Energia Ltda, owner of the CTJL asset, will be up to R$ 325 million, of which R$ 210 million will be paid at the closing of the transaction and R$ 115 million are subject to restatement with certain conditions provided for in the Quota Purchase and Sale Agreement (QPA).
“The sale of the Jorge Lacerda Thermoelectric Complex is conducive to ensuring the gradual transition of the regional economy, reducing potential local socio-economic impacts when compared to a process of operational decommissioning”, said Eduardo Sattamini, Chief Executive and Investor Relations Officer of ENGIE Brasil Energia. The transaction will still require around 60 days for conclusion.
Currently in Brazil, about 90% of ENGIE ’s energy matrix originates from hydroelectric, wind, solar and biomass sources. “The process of gradual portfolio decarbonization at ENGIE in the country is aligned to the global strategy of accelerating the transition to carbon neutral economy, focused on renewable generation and transmission infrastructure”, declared the Chairman of the Board and CEO of ENGIE in Brazil, Maurício Bähr.
In addition to the signature of the agreement to sell the Jorge Lacerda Thermoelectric Complex, the Company is also receiving proposals for the sale of the Pampa Sul Thermoelectric Plant, a coal-fired unit in the state of Rio Grande do Sul.