AES and EDF International S.A. (EDF) have agreed to acquire the 11.68% interest in Light Servicos de Eletricidade S.A. (Light) that is owned by two subsidiaries of Reliant Energy (REI) at a joint cost of $430 million. A subsidiary of AES will purchase approximately 30% of the shares and EDF will buy the rest, partially subject to a right of first refusal by Companhia Siderurgica Nacional (CSN) and approval from Brazilian regulatory authorities. The transaction is expected to be complete by the end of 2000.
Light, an electric generation and distribution company, serves 2.9 million customers in the Rio de Janeiro area. In 1996, AES and its partners CSN, EDF, and REI gained a controlling interest in Light. Light owns a controlling interest in Eletropaulo S.A., an electric distribution company with 4.5 million customers in the Sao Paulo area. AES plans to continue negotiations to purchase CSN’s control shares, thereby reaching their goal of controlling Eletropaulo and the telecom companies in Sao Paulo and Rio de Janeiro. AES gained control of their plants in Northern Ireland earlier this year, and is working on ownership interests in their plants in China.
Based on a report from ElectricNet
