Jun 8, 2017

The Brazilian Development Bank (BNDES), in Diário Oficial da União (DOU), today published an announcement of conclusion of the process of privatization of the electric power distributor Celg Distribuição S.A (CELG D), acquired by the Italian group Enel Brasil S.A. in an auction held on November 30, 2016, at BM&FBovespa, nowadays known as B³.

The offer of shares issued by the company was held in two stages. Firstly, an auction was held for the transferring of CELG-D’s control, with the single lot offer of 142,933,812 ordinary shares, corresponding to 69,085,140 shares from Eletrobras and 73,848,672 shares from CELGPAR, properly paid up, representing approximately 94.8393% of the share capital with voting and total rights of CELG-D.

In addition to the auction, 7,676,127 common shares issued by CELG-D were offered to employees and retirees of the company, representing 10% of the total and voting capital of CELG-D, owned by Eletrobras at the date of the event.

Enel placed the highest bid, valued at R$ 2,187,000,000.00, for the acquisition of the completeness of the object of the Auction, which represented a gain of approximately 28% over the company’s minimum appraised value.

The offer to employees and retirees was completed on May 2017, with the acquisition of 86,088 common shares from CELG D. The remaining 7,590,039 common shares were acquired by Enel Brazil in the total value of R$ 81,697,403.73 last May 4 this year.

The audit report and feedback, signed by UHY Moreira – Auditores enterprise, attested that the privatization process of CELG D was conducted according to the rules listed in Auction Notice no. 02/2016/CELG-D – PND; to the applicable legal and regulatory rules; that there was cohesion and coherence in the adopted procedures in all stages of the process of privatization; that the principles of fairness and transparency were met in the acts practiced and that there was fairness in the treatment of all interested parties.