Brazilian Pair Completes Rede Buy

Brazil’s CPFL Energia and Equatorial Energia have agreed to takeover Rede Energia and carry out needed investments at the struggling electricity holdco, the parties say. In the deal, CPFL and Equatorial pay BRL1.00 ($0.48) to buy the stake owned by controller Jorge Queiroz de Moraes, and have committed to make overdue regulatory payments, pay off short-term debt and reduce leverage, among other investments. Rede’s total needs have been estimated at BRL770m. The pair had initially signed a letter of understanding with Rede in October, following Equatorial’s purchase of Rede’s Centrais Eletricas do Para (Celpa) unit in September. Rede filed for bankruptcy protection last month.