Germany's E.ON plans to buy Eike Batista's stake in Brazil's MPX Energia: report
27 February 2013
Germany's E.ON SE, Europe's largest privately-owned energy company, plans to team up with a group of Brazilian banks to acquire Brazil's MPX Energia SA, Brazilian newspaper Valor Econômico yesterday reported without saying where it got the information from.
E.ON, which already holds an 11.7-per cent stake in MPX Energia, could team up with BNDESPar, an investment holding company of state-development bank BNDES, and local asset managers, Dynamo Gestão de Recursos, Gávea Investimentos and Bradesco Asset Management, the report said.
Sao Paulo exchange-listed MPX Energia is part of Brazilian billionaire Eike Batista's EBX Group.
Since E.ON does not have the financial muscle to acquire MPX alone, it will team up with other partners to buy 22.3 per cent stake from Batista for 3 billion reais ($1.5 billion) and take its holding to about 34 per cent, the paper added.
Batista holds 54 per cent stake in Rio de Janeiro-based MPX Energia, which currently has a market cap of $6 billion.
MPX Energia generates electricity through the development of mineral coal, natural gas, and renewable source projects.
The company also engages in the exploration of natural resources, such as coal and natural gas, and power and fuel trading.
It also has thermal power plants, renewable energy projects, coal projects, and natural-gas projects.