(Bloomberg) -- Brazilian energy company Eneva SA is looking to accelerate acquisitions with money raised in an equity offering targeting as much as 4.2 billion reais ($773 million), according to CEO Lino Cançado.
The power and trading company, which counts Banco BTG Pactual SA and the billionaire Moreira Salles family as its main shareholders, also seeks to bid in the next energy auctions organized by Brazil’s regulator, Cançado said in a call on Tuesday. Shares gained as much as 2.6% during Tuesday’s trading session in Sao Paulo.
The Rio de Janeiro-based firm said in a filing earlier Tuesday it had engaged banks to work on an offering of new shares by year-end.
The initial amount of the offering will be 3.2 billion reais, with the possibility of issuing an additional 1 billion reais, for a total of up to 4.2 billion reais. Shares will be issued at 14 reais apiece, Eneva said, compared with a closing price of 13.25 reais on Monday.
The company also agreed to buy four thermal power plants from Banco BTG Pactual, valued at 2.9 billion reais, and expects to reduce its total leverage by a third after the deal is concluded.
BTG Pactual, which holds a stake of about 23% in Eneva, seeks to make the company its main platform for power generation and natural gas investments in Brazil, according to the filing.
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