MPX Energia SA (MPXE3), the electricity venture jointly controlled by Brazilian billionaire Eike Batista and E.ON SE (EOAN), will seek to raise 1.2 billion reais ($565 million) in a public share sale as it increases investments.
MPX will issue 120 million new shares, boosting the total number of outstanding shares to 578 million, with Dusseldorf, Germany-based EON pledging to acquire 36.6 million shares at 10 reais each, the Rio de Janeiro-based electricity producer said today in a regulatory filing. The sale may be increased to 162 million if there is sufficient demand, MPX said in the filing.
Funds from the sale will be used for investments and to strengthen the company’s cash position after negative earnings before interest, taxes, depreciation and amortization widened to 383 million reais in 2012 from a 300 million the prior year. The venture between EON and Batista, who founded MPX, started in January 2012 when Germany’s largest utility bought an initial 10 percent stake in the Brazilian generator.
EON will retain a 36.2 percent stake in MPX after the offering, while Batista’s stake will fall to 23.7 percent from 29 percent, according to today’s prospectus. Free floating shares will climb to 39.2 percent from the current 33.6 percent, according to the prospectus.
Banco BTG Pactual SA (BPAC3) and Goldman Sachs Group Inc. will coordinate the share sale.
MPX slid 1.4 percent to 9.15 reais at 11:12 a.m. in Sao Paulo.
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