By Brazil Stock Guide – Energisa SA (ENGI11) said Itaú Unibanco SA (ITUB4) agreed to invest 1.4 billion reais ($259 million) in a holding company that controls stakes in some of the Brazilian power distributor’s subsidiaries, a move aimed at strengthening the group’s capital structure.
The investment was made through the subscription of preferred shares issued by Denerge Desenvolvimento Energético SA, according to a securities filing dated June 29. Itaú will hold a direct minority stake of about 9.98% in Denerge and an indirect stake in subsidiaries including Rede Energia Participações SA, Energisa Mato Grosso do Sul, Energisa Sul-Sudeste and Energisa Mato Grosso. Energisa’s units trade on B3 under ENGI11, while Itaú Unibanco’s preferred shares trade under ITUB4.
The deal follows an investment agreement signed by Energisa, Itaú, Nova Denerge SA and Denerge, the filing said. Denerge is described as a holding company whose only relevant asset is direct and indirect equity interests in companies operating in Brazil’s electric power sector.
The capital increase changes Denerge’s ownership structure. Before the transaction, Nova Denerge held 67.18% of Denerge, while Energisa held 32.82%. After the transaction, Itaú holds 9.98%, Nova Denerge holds 60.47% and Energisa holds 29.54%, according to the chart included on page 2 of the filing.
Energisa said the transaction is part of an effort to capitalize Denerge and improve the group’s corporate structure. The shareholders’ agreement signed alongside the investment grants Energisa and Nova Denerge an option to acquire all of the preferred shares held by Itaú.
The company said the transaction will help reinforce Energisa’s financial capacity and strengthen its capital structure. The filing was signed by Chief Financial and Investor Relations Officer Maurício Perez Botelho.