EON SE, Germany’s biggest utility, plans to buy as much as 1.56 billion reais ($776 million) in shares of MPX Energia SA (MPXE3) from billionaire Eike Batista making it the largest shareholder in the Brazilian company.
EON agreed to acquire 25 percent of MPX’s shares from Batista for as much as 11 reais a share, MPX said in a statement. The sale will reduce the billionaire’s stake to 24 percent from 54 percent and increase EON’s ownership to 36 percent. Batista and EON will reach a shareholders agreement to regulate voting rights at MPX, it said.
MPX will also offer 1.2 billion reais in shares to other investors to raise capital, the company said. MPX hired Banco BTG Pactual SA to carry out the share sale for at least 10 reais a share.
Shares in Batista’s public companies have declined as much as 84 percent in the past year after his OGX Petroleo & Gas Participacoes SA cut oil output targets, erasing more than $25 billion of his personal fortune.
The deal will give EON a vehicle for growth in Brazil, the second-biggest emerging market after China. MPX will get additional financing management support from EON as it expands power generation plants to meet robust growth in electricity demand, MPX said.
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