CELG-D Privatisation

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The project entails the privatization of nearly 95% of the shareholding of Celg Distribuição S.A. which was approximately 51% owned by the Federal Republic of Brazil via its controlled electricity company Eletrobras, and around 49% by the State of Goiás via its holding company Celg-Par). CELG's market includes 237 municipalities with a combined population of about 6.2 million people. CELG’s customer base of 2.9 million is served via a network over 200,800 km long. The company holds a concession that is valid until 2045. Enel Brasil won the public tender for the privatization of CELG, which was held in November 2016 by the Brazilian government via national development bank BNDES. The criteria for winning was the highest price offered to the state. The sale of CELG is part of the Brazilian government’s program for the privatization of state assets. Enel Brasil has acquired approximately 94.8% of the share capital of Celg Distribuição by presenting an economic offer of R 2,187 billion (roughly $701.7 million as of the closing date). After the closing of the purchase, a residual stake of around 5.1% of CELG will be offered to the company’s current employees and retired employees, through a process that will allow Enel Brasil to purchase the shares not bought by current employees and retired employees. Transaction closed on February 14, 2017. https://www.enel.com/media/press/d/2017/02/enel-closes-acquisition-of-brazilian-distribution-company-celg- https://www.reuters.com/article/us-celgpar-m-a-enel/italys-enel-buys-brazils-celg-d-for-647-million-idUSKBN13P1XA