NEOENERGIA S.A. ("NEOENERGIA"), in compliance with the Instruction of the Brazilian Securities and Exchange Commission ("CVM") No. 358, of January 3, 2002, as amended, informs its shareholders and the market in general that Neoenergia Renováveis S.A., a company indirectly controlled by Neoenergia and operating in the renewable energy generation segment, signed on 09/17/2020 an Asset Purchase and Sale Agreement with PEC Energia S.A. ("PEC Energia"), for the acquisition of wind power generation pipeline projects, with a potential to be installed of approximately 400 MW ("Acquisition"). The projects are located in Serra da Gameleira, State of Bahia, and comprise a total area of around 7,800 hectares.
The total amount of the Acquisition may reach R$ 80 million, to be paid from the closing of the transaction and depending on the achievement of certain farm development milestones.
The closing of the Acquisition is subject to the fulfillment of the preceding conditions customary in this type of transaction, including the approval of the Administrative Council for Economic Defense ("CADE").
The Company also became the holder of the right to exercise the Call Option, with PEC Energia, for other wind projects in the Serra da Gameleira region. The Call Option may be exercised at the discretion of Neoenergia Renováveis, at which time it will be informed to the market along with the price conditions and linked MW.
The Acquisition reinforces the execution of Neoenergia's long-term strategic plan, meeting the Group's policies of profitability and efficient allocation of capital, in addition to the commitment to expand the participation of renewable energy sources in the Brazilian energy matrix, actively contributing to a sustainable and low-carbon future, enhancing its performance in favor of the fight against climate change.
Rio de Janeiro, September 18, 2020.
Leonardo Pimenta Gadelha
Chief Financial Officer and Investor Relations