Votoratim Energia Ltd. and Canada Pension Plan Investment Board’s $453 Million Acquisition of 35,56% interest in Companhia Energética de São Paulo – CESP


Stocche Forbes, Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga, Wald Antunes Vita Longo e Blattner and Madrona Advogados advised on the deal

Votorantim Energia and Canada Pension Plan Investment Board (CPPIB) announced that a consortium formed by their joint venture VTRM Energia Participações S.A. has acquired the controlling stake in Brazilian hydro generation company Companhia Energética de São Paulo (CESP), acquiring 80.2% of its common shares and 13.7% of its class B preferred shares. This investment is the result of an auction held today by the State of São Paulo at the Brazilian Stock Exchange.

The consortium offered R$14.60 per common and class B preferred share for a 35.6% stake in the company’s total share capital, representing a R$1.7 billion investment by the joint venture partners.

Following the completion of the transaction, and as described in the auction bidding documents, CESP will be granted a new concession for the Porto Primavera Hydroelectric Power Plant for 30 years in exchange for a payment of R$1.4 billion. Following the change of control, the consortium will launch a Mandatory Tender Offer for the remaining common and class B preferred shares of CESP, compliant with the terms outlined in the auction bidding documents, the company’s bylaws and the applicable regulation of the Brazilian Securities Exchange Commission, Comissão de Valores Mobiliarios.

This transaction aligns with the growth objectives of the joint venture between Votorantim Energia and CPPIB in renewable energy in Brazil, adding to its current portfolio of 564MW of installed capacity. The joint venture was first announced in December 2017 with a target to invest in Brazil’s power generation sector.

The closing of the transaction, and subsequent transfer of control of CESP, is subject to customary regulatory approvals, including Agência Nacional de Energia Elétrica (ANEEL) and Conselho Administrativo de Defesa Econômica (CADE).

Stocche Forbes advised VTRM Energia Participações S.A. with André Stocche (Picture), Fabiano Milani, Renato Coelho, Emilio Pescarmona Gallucci and Raphael Fonseca Niemeyer.

Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga advised Votorantim Energia and Canada Pension Plan Investment Board with Fabiano Ricardo Luz de Brito, Camila Calais, Luciana Dias Prado, Flávio Pereira Lima, Hiram Bandeira, Cassio Gama Amaral and Ana Carolina Katlauskas Calil.

Wald Antunes Vita Longo e Blattner advised Votorantim Energia and Canada Pension Plan Investment Board with Alexandre de Mendonça Wald, Mariana Tavares Antunes, Bernardo Cavalcanti Freire and Pâmela Silveira Leite.

Madrona Advogados advised Banco Fator S.A. acting as arranger on the privatization process of Companhia Energética de São Paulo – CESP – with a team including Rosane Menezes, Ricardo Madrona, Rodrigo Machado and Fernando Gallacci.

Involved fees earner: Ricardo Madrona – Madrona Advogados; Rosane Menezes – Madrona Advogados; Rodrigo Machado Moreira Santos – Madrona Advogados; Fernando Gallacci – Madrona Advogados; Alexandre de Mendonça Wald – Wald Antunes Vita Longo e Blattner; Bernardo Cavalcanti Freire – Wald Antunes Vita Longo e Blattner; Mariana Tavares Antunes – Wald Antunes Vita Longo e Blattner; Pâmela Silveira Leite – Wald Antunes Vita Longo e Blattner; André Mestriner Stocche – Stocche Forbes Advogados; Fabiano Marques Milani – Stocche Forbes Advogados; Emilio Pescarmona Gallucci – Stocche Forbes Advogados; Raphael Fonseca Niemeyer – Stocche Forbes Advogados; Renato Souza Coelho – Stocche Forbes Advogados; Fabiano Ricardo Luz de Brito – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Ana Carolina Katlauskas Calil – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Camila Leal Calais – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Luciana Dias Prado – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Cassio Gama Amaral – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Flávio Pereira Lima – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Hiram Bandeira Pagano Filho – Mattos Filho Veiga Filho Marrey Jr & Quiroga;

Law Firms: Madrona Advogados; Wald Antunes Vita Longo e Blattner; Stocche Forbes Advogados; Mattos Filho Veiga Filho Marrey Jr & Quiroga;

Clients: Canada Pension Plan Investment Board; Banco Fator; VTRM Energia Participações; Votorantim Energia Ltda. ;