Brazilian power company Eneva unveiled its proposal for a BRL50 billion ($10.2 billion) merger with Vibra Energia to form the country’s third-largest listed energy company.
Eneva said its non-binding proposal to Vibra — which was formerly the fuel retailing arm of state-controlled Petrobras — is valid for 15 days, according to a securities filing late on Sunday.
An Eneva-Vibra tie-up would create the largest listed energy firm in Brazil after Petrobras and recently privatized electricity company Eletrobras.
Brazilian investment bank BTG Pactual, which holds a 22% stake in Eneva, was reported as saying it would consider selling its thermo-power assets to the merged company.
Formerly BR Distribuidora, Vibra carried out an initial public offering in 2017, selling 28.75% and became fully privatized in 2019 via a follow-on offering on the São Paulo stock exchange.
“Eneva may see Vibra as a good way to attract customers to its large gas reserves,” Citibank analysts said in a report on Monday.
Eneva has an installed capacity of energy of 5.5GW, including 4.6GW in natural gas and 870MWp in solar energy. The firm said in June it that it had begun a search for “potential strategic partners” for renewable energy projects.
BTG Pactual and Itaú BBA are Eneva’s financial advisors while Pinheiro Neto and Spinelli Advogados are its legal advisors.