Brazilian steel maker Companhia Siderúrgica Nacional’s Companhia Florestal do Brasil is declared winner of an auction for the privatization of the energy producer & distributor of Brazils’ southern state of Rio Grande do Sul CEEE-G. The company was sold for BRL 928 million (USD 179 million), with a premium of 10.93% over the initial value stipulated in the public notice, with a fierce competition with another qualified bidder Companhia Energética de São Paulo. CSN said that “the acquisition has the objective of supporting its strategy of business expansion, via the acquisition of renewable energy, in the search of self-sufficiency in energy to strengthen its competitiveness.” Companhia Florestal do Brasil will also pay BRL 1.943 billion, along 30 years, for the concession of the power plants owned by CEEE-G. The privatization of the company began in January 2019, with the preparation of the necessary legislative proposals. In May of the same year, the Legislative Assembly approved the withdrawal of the mandatory plebiscite for the sale of the company and, in July, it authorized the privatization of the companies of the CEEE Group. CEEE-G has five hydroelectric plants, eight small hydroelectric plants and two hydroelectric generating plants with a granted power of 921 MW. Own generating units are grouped into two systemsDepartment of Installations of the Jacuí SystemDepartment of Installations of the Salto System The National Bank for Economic and Social Development BNDES was hired to prepare studies and model the privatization project. CSN has entered recently in an agreement to buy the Chapeco energy company, the owner of the Quebra-Queixo hydroelectric power plant.
Brazilian steel maker Companhia Siderúrgica Nacional’s Companhia Florestal do Brasil is declared winner of an auction for the privatization of the energy producer & distributor of Brazils’ southern state of Rio Grande do Sul CEEE-G. The company was sold for BRL 928 million (USD 179 million), with a premium of 10.93% over the initial value stipulated in the public notice, with a fierce competition with another qualified bidder Companhia Energética de São Paulo. CSN said that “the acquisition has the objective of supporting its strategy of business expansion, via the acquisition of renewable energy, in the search of self-sufficiency in energy to strengthen its competitiveness.” Companhia Florestal do Brasil will also pay BRL 1.943 billion, along 30 years, for the concession of the power plants owned by CEEE-G. The privatization of the company began in January 2019, with the preparation of the necessary legislative proposals. In May of the same year, the Legislative Assembly approved the withdrawal of the mandatory plebiscite for the sale of the company and, in July, it authorized the privatization of the companies of the CEEE Group. CEEE-G has five hydroelectric plants, eight small hydroelectric plants and two hydroelectric generating plants with a granted power of 921 MW. Own generating units are grouped into two systemsDepartment of Installations of the Jacuí SystemDepartment of Installations of the Salto System The National Bank for Economic and Social Development BNDES was hired to prepare studies and model the privatization project. CSN has entered recently in an agreement to buy the Chapeco energy company, the owner of the Quebra-Queixo hydroelectric power plant.
