ISA CTEEP ANNOUNCES THE ACQUISITION OF PIRATININGA – BANDEIRANTES TRANSMISSORA DE ENERGIAISA CTEEP, one of Brazil’s leading private power transmission concessionaires, has announced the acquisition of Piratininga – Bandeirantes Transmissora de Energia (PBTE) for R$1.6 billion. The company operates a 30-km underground transmission line (15-km double circuit) in the city of São Paulo, which went operational last April and connects the Piratininga II and Bandeirantes substations, belonging to ISA CTEEP.
PBTE won the bid for building and operating this line at Auction 013/2015. The Permitted Annual Revenue (PAR) for the 2020/2021 cycle is R$172 million, adjusted annually for inflation (IPCA).
In São Paulo city, ISA CTEEP operates 18 substations, over 619 km of transmission lines and has now added the new asset. “This asset can be operated with great synergy with our operation in São Paulo and is aligned with our strategy to seek growth with sustainable value, maintaining the payment of proceeds to our shareholders,” says Rui Chammas, CEO of ISA CTEEP.
The conclusion of the operation is subject to certain conditions precedent typical to this type of transaction, such as approval from the National Electricity Regulatory Agency (ANEEL) and Brazil’s antitrust agency CADE. The operation is expected to be completed in the first quarter of 2021.
ISA CTEEP was advised by BTG Pactual and Machado Meyer Sendacz Opice Advogados in this transaction.