Camargo makes strategic acquisition in CPFL
Valor Econômico 02/02/2009
The acquisition of the part of Votorantim in VBC Energia, a holding that owns 28% of CPFL Energia, the São Paulo energy distributor and generator, shows this sector is strategic for Camargo Corrêa, which paid R$ 2.66 billion (US$ 1.6 billion). Making a comparison with the market value of CPFL in the Exchange Market, of nearly R$ 15 billion (US$ 6.5 billion), the business included a premium of nearly 30% on the equivalent to the part of Votorantim. But, according to sources of the sector, by remaining at VBC and taking over the stocks of Votorantim, Camargo became the main stockholder of CPFL, giving more value to this asset. Despite of having less stocks than Previ (31% in the ordinary and total capital), VBC has the majority in the control block, with 45%, and it is allowed to indicate three members to the management council. That explains why Cemig and Neoenergia fought for the 50% Votorantim held in VBC. The holding was created in 1997 by three investors whose names originated the acronym: Votorantim, Bradesco and Camargo. The bank left the business in 2006. CPFL is the main distributor of energy of the country, with 13.3% of a market which still has many active groups. For specialists, this segment will live a new wave of consolidation and CPFL will be present with great appetite. In generation, it is present in eight hydroelectric power plants and in 33 small plants. For 2010, the estimated installed power is 2,170 megawatts (MW). Until September, it had net earnings of R$ 7.2 billion, with R$ 900 billion (US$ 391 million) of net profit. Present in the Bovespa New Market since 2004, it is one of the greatest dividend payers of the country. To Votorantim, this sale provided more energy to off-set the loss of R$ 2.2 billion with derivatives in the crisis, close the purchase of the pulp producer Aracruz and move on with its investment plan. Since October, until Friday, it raised R$ 7.5 billion (US$ 3.3 billion) with the sale of two biotechnology companies, 50% of the bank and the withdrawal from the energy area as a business. But it continues with self-generation. Regardless of all that, the BNDES (National Development Bank) provided support with more than R$ 2 billion (US$ 870 million) in order for it to close the purchase of Aracruz.