May 28, 2023

newspaper | Privatization of ES Gás: Energisa wins the auction with a bid of R$1.42 billion

At a premium of 7.28%, the Minas Gerais Group was the buyer of the state-owned company responsible for natural gas distribution in Espírito Santo.

Operating ES Gás, ES natural gas distributor. (ES Gas/Disclosure)

Posted Mar 31, 2023 at 3:15pm – Updated an hour ago

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Companhia de Gás do Espírito Santo (ES Gás) was sold on Friday (31) for R$1.423 billion. The winner of the privatization auction was the mining company Energisa SA. The premium was 7.28%, representing a value of R$96.5 million more than the initial value expected in the auction, which had a minimum bid of R$1.326 billion.

Two companies competed to take over the state-owned company on the Brazilian B3 stock exchange. Energisa competes with GR RJ 010 Empreendimentos e Participações. The auction was disputed. In addition to the initial bids, there were 27 bids throughout the auction, 14 from Energisa and 13 from a competitor.

ES Gás has been valued by BNDES, which is responsible for privatization modeling, with a market capitalization of R$1.326 billion. Espírito Santo Government and Vibra (formerly BR Distribuidora) are partners in ES Gás, with 51% and 49% of the voting shares, respectively. With the auction, all shares will be owned by Energisa.

During the last month, the Roadshow period (when ES Gás was introduced to the market), at least four companies have shown interest and formally sought shareholders. At the end of the term, however, there were two formal proposals.

Governor Renato Casagrande considered the auction a positive outcome and assessed that the sale price demonstrates the effective value and capacity of the company. “It is worth emphasizing that we will maintain a balanced and stable regulatory agency and naturally abide by all rules of regulation and what is specified in terms of legislation.”

With the acquisition, Energisa, which has a strong presence in the energy sector, will enter the natural gas sector. According to Ricardo Botelho, CEO of the group, with the addition of the company’s experience in energy distribution to the capabilities of ES Gás, it will be possible to strengthen the gas market in Espírito Santo and in the country.

“We want to be champions of the energy transition and contribute to a more sustainable world. Entering the natural gas market is a lever to achieve this purpose,” Botelho stated.

ES Gás was privatized in a stock exchange auction
ES Gás was privatized in an auction on the stock exchange on Friday (31). (Caue Diniz / B3)

ES Gás is responsible for pipeline natural gas distribution in the state. It serves 70,000 consumers, including residential and commercial, in the 13 municipalities of Espírito Santo: Vitoria, Vila Velha, Serra, Carriasica, Viana, Anchita, Itapimirim, Cachoeiro de Itapimirim, Linhares, São Mateus, Aracruz, Colatina and Suritama.

With the privatization of the company, the pipeline gas network is expected to reach more cities in the coming years, serving 50% more customers.

Get to know Grupo Energisa

On the market for 118 years, Energisa is the largest private group with national capital in the Brazilian electricity sector. There are 20 million people serving in 862 municipalities in all regions of the country, and more than 15,000 employees across the country. The company’s focus is on power distribution and transmission.

Energisa controls distribution companies in 11 states in Brazil: Paraíba, Sergipe, Minas Gerais, Rio de Janeiro, Mato Grosso, Mato Grosso do Sul, Tocantins, Paraná, São Paulo, Rondônia and Acre.

In addition, the group works with renewable energy generation, with new energy solutions – through the brand (re)energisa -, with distributed generation from renewable sources, with energy marketing in the free market and value-added services, in addition to the Shared Services Center, Call center company and fintech company Voltz, number one in the energy utilities sector.

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