Eneva (ENEV3) announces follow-on of up to R$4.2 billion; see conditions – Money Times


Eneva, ENEV3, Share Offering, follow on, BTG Pactual, Bradesco BBI, Itaú BBA

Eneva (ENEV3) filed a request to register a subsequent offering of common shares worth up to R$4.2 billion (Image: Disclosure/Eneva)

A Eneva (ENEV3) filed on Tuesday night (1) a request to register a subsequent offering of common shares (also known as “follow on”) of, initially, 228,571,429 common shares.

In total, the amount amounts to up to R$4.2 billion, and the shares will be offered at R$14 per share — where the issue price per share will be fixed after the completion of the procedure for collecting investment intentions.

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As announced in July, the offer aims to finance power generation projects, natural gas exploration and possible mergers and acquisitions activities.

The demand for shares in the operation is already guaranteed, as Partners Alpha, an investment vehicle for BTG partners that already has a 15% stake in Eneva, has committed to investing in the offer.

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The details of the Eneva share offering (ENEV3)

The offer will be coordinated by the BTG Pactual Investment Bankingas leader of the operation, in addition to Itaú BBA and the Bradesco BBI.

Furthermore, the company said that its shareholder, Partners Alphaan investment vehicle for BTG partners, committed to purchasing, if necessary, all the shares. This does not include the extra distribution, at R$14 each, since Eneva's common share closed at R$13.93.

According to the schedule in the transaction prospectus, the offering should be priced on October 10th.

It is worth mentioning that shareholders who adhere exclusively to the priority offer, will not be able to participate of the procedure for Bookbuilding and, therefore, will not participate in the process of determining the price per share.

The company also informed in the statement that it intends to fully use the net proceeds from the offer to accelerate the implementation of its business plan and long-term strategy in its operating segments.

In this case, this includes, but is not limited to, structuring projects greenfield e brownfield in energy generation auctions, investments in exploration and production (E&P), accelerating exploratory campaigns in the Parnaíba and Amazonas basins and the development of the Paraná basin, in addition to investments in the gas market not connected to the grid (off-grid ), offering solutions for industrial customers and the road transport market.

Eneva also plans to carry out M&A operations (mergers & acquisitions), notably the acquisition of Gera Maranhão and Linhares Participações, and optimizing its capital structure, strengthening the Company's balance sheet and reducing its leverage.

See the statement

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