The value of the operation is R$2.5 billion (Enterprise Value 100%); EDF Brasil now holds 75% of Neoenergia's stake in the Dardanelos hydroelectric plant, located in Mato Grosso and with an installed capacity of 261MW.

Neoenergia announced on Friday (21) the sale of 75% of its stake in the Dardanelos hydroelectric plant, located in Mato Grosso, to EDF Brasil Hidro Participações S.A. ("Hidro Participações"). The remaining stake in the asset, 25% of the share capital, will be held by Neoenergia through a new company. On the same date, Neoenergia and EDF Brasil Holding S.A. ("EDF Brasil Holding") entered into an investment agreement whereby Neoenergia will contribute R$93.5 billion to Hidro Participações, holding 25% of Hidro Participações' share capital and EDF Brasil Holding the other 75%.

Within two and a half years of the conclusion of the operation, EDF Brasil Holding will have the right to acquire Neoenergia's 25%. Neoenergia will also be able to sell its entire stake.

The negotiated value of the transaction is R$ 2.2 billion (100% Enterprise Value), which will be adjusted by the CDI variation from December 2024 until the closing date of the operation (the updated value until the date of signing is an Enterprise Value of R$ 2.5 billion, which will continue to be adjusted by the CDI variation until the conclusion of the operation), in addition to the usual adjustments for this type of transaction.

Located on the Aripuanã river, in the state of Mato Grosso, the plant has five generating units with an installed capacity of 261MW, enough to serve around 1.4 million inhabitants.

"This operation reinforces Neoenergia's asset rotation strategy with a focus on portfolio optimization with value generation, following capital discipline and structure simplification. We took control of Dardanelos in 2023. Now, with this sale, we have managed to maximize the value of the asset for our shareholders.The transaction reinforces the creation of value through M&As (mergers and acquisitions), with more than 10 operations having been carried out by the Neoenergia Group in the last three years," said Eduardo Capelastegui, CEO of Neoenergia.

According to the executive, the transaction will also bring positive financial impacts to Neoenergia in terms of both EBITDA and net profit, as well as strengthening the company's cash flow by reducing leverage.

Completion of the transaction is subject to conditions precedent that are customary in this type of transaction, including approval by the Administrative Council for Economic Defense (CADE) and the National Electric Energy Agency (ANEEL). The Dardanelos hydroelectric plant has been in commercial operation since August 2011.