SAO PAULO/BRASILIA (Reuters) – Brazilian development bank BNDES has agreed to sell part of its stake in power company AES Tiete SA (TIET11.SA) to AES Corp (AES.N), it said in a filing on Tuesday.
AES Corp offered to buy 65% of BNDES’ stake in AES Tiete for 17.15 reais ($3.33) per share, fully in cash. The sale will reduce BNDES’ stake in the company to 9.9% from 28.41%.
Besides AES Corp’s offer, BNDES and all AES Tiete’s shareholders had received a merger proposal from power company Eneva SA (ENEV3.SA) involving cash and shares.
Shares in AES Tiete rose 7% on Monday as the bidding war between AES Corp and Eneva intensified, their biggest rise in three months. That followed a 9% slump on Friday, the biggest fall in over four months.
Eneva issued a statement on Tuesday saying it will “continue to work on generating value to its shareholders, focused on the development of its business plan and always attentive to opportunities that represent the best interest of all its shareholders and stakeholders.”
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