Copel acquires Aventura and Santa Rosa & Mundo Novo Wind Complexes (260.4 MW)

CURITIBA, PARANá, BRASIL, October 7, 2022 /EINPresswire.com/ -- Curitiba, Brazil, October 7, 2022 – COPEL (“Company”), a company that generates, transmits, distributes and trades energy, informs its shareholders and the market in general that, on this date, its wholly-owned subsidiary Copel Geração e Transmissão (“Copel GeT”) signed an agreement for the acquisition of 100% of the Santa Rosa & Mundo Novo (SRMN) and Aventura wind farms (“Wind Complexes”), currently owned by EDP Renováveis Brasil S/A., totaling 260.4 MW of installed capacity (“Transaction”).
The acquisition is part of the Company's strategy for growth in renewable energy, expands the diversification of the power generation matrix and is fully in line with the Investment Policy.
The total value of the transaction (Enterprise Value) is R$1,803 million, with an Equity Value of approximately R$965 million, subject to adjustment until the closing date of the transaction. The enterprise has long-term financing (maturity until 2043) contracted with Banco do Nordeste (BNB), with rates of IPCA + 2.19% p.a. (Adventure Complex) and IPCA + 1.98% p.a. (Santa Rosa & Mundo Novo Complex).
The base date of the transaction is December 31, 2021, so that, once the transaction is closed, the cash flow earned during 2022 will be appropriated by Copel GeT (Locked Box).

Operating Facilities and Privileged Location
The Wind Complexes consist of nine operating wind farms (brownfield), located in the municipalities of Touros and São Tomé in Rio Grande do Norte State, a region considered as one of the best in the world for the generation of wind power(1), which allows a high capacity factor, that, even with the recertification of energy production by Copel, with advice from Camargo Schubert Engenharia, reaches around 61% (P50).

Long-Term Energy Contracting
About 76.5% of the energy of the enterprise was sold in the regulated contracting environment (ACR). In addition, about 13.7% of the total energy generated wassold in the free contracting environment (ACL), leaving about 9.8% for new contracts. It should be noted that until the start of energy supply in the ACR in 2023, around 95% of the energy has been traded in the ACL at market prices.

Potential Synergies and More Incentivized Energy in the Consolidated Portfolio
With the acquisition, the Company's wind power generation installed capacity will be increased by 28%, with an optimized operational management structure, thus allowing for operational synergy with other companies in the group that share the structure.
With the addition of this capacity, wind power will represent 17% of Copel's Group power generation portfolio, which brings benefits with the increase in incentivized energy and the reduction of exposure to hydrological risk. The entities that own the complexes are framed in the presumed profit and there is a benefit of 50% in the cost of the TUST/TUSDg (Tariff for the Use of the Transmission and Distribution System).

Applicable Approvals
The acquisition is subject to approval by CADE, creditors and other conditions precedent customary for this type of transaction.
As the transaction will be carried out by Copel GeT, a wholly-owned subsidiary of the Company, its completion does not depend on the resolution of the Company’s General Meeting, pursuant to article 256 of the Corporate Law, with no right of withdrawal for the Company's dissenting shareholders, in terms of art. 256, §1 of Law 6,404/76.
The Company had legal advice from Cescon, Barrieu, Flesch & Barreto Advogados and financial advice from XP Investimentos.
Clarifications about the transaction may be made in the conference call with investors that the Company will hold tomorrow (October 07, 2022) at 10 a.m. (click here to access: https://mzgroup.zoom.us/webinar/register/WN_Mpdu2dNvSoiKeTicota9PA). The presentation will be available on the Investor Relations website (https://ri.copel.com/en/publications-and-documents/presentations/).

Relações com Investidores
COPEL
+55 41 3331-4011
ri@copel.com