CTEEP Companhia de Transmissão de Energia Eletrica Paulista S A : ISA CTEEP completes acquisition of Piratininga - Bandeirantes Transmissora de Energia

ISA CTEEP completes acquisition of Piratininga - Bandeirantes Transmissora de Energia

Investment amounts to R$ 1.6 billion

São Paulo, March 2, 2021 - ISA CTEEP, the largest private energy transmission company in the country, completed the acquisition of Piratininga - Bandeirantes Transmissora de Energia (PBTE), with an investment of R$ 1.6 billion (equity value), after the fulfillment of the conditions precedent set forth under the share purchase and sale agreement, such as the consent of the Administrative Council for Economic Defense (CADE) and the National Electric Energy Agency (Aneel).

PBTE operates a 30km underground transmission line (15km double circuit) in the city of São Paulo, which started operating in April 2020 and connects Piratininga II and Bandeirantes substations, both owned by ISA CTEEP. The permitted annual revenue (RAP) in the 20/21 cycle is R$ 172 million with annual inflation adjustment (IPCA).

ISA CTEEP operates 18 substations, more than 619 km of transmission lines in the city of São Paulo, and now integrates the new asset, which will be operated in high synergy with the company's current assets.

'PBTE acquisition reinforces our growth strategy in purchasing assets featuring synergy with our operations, enabling the increase of revenues by improving operational efficiencies, enabling the creation of sustainable value for all stakeholders', said ISA CTEEP's CEO, Rui Chammas.

The company was assisted by BTG Pactual and Machado Meyer Sendacz Opice Advogados in the transaction.

Growth paths

ISA CTEEP's 2030 strategy envisages growth through investments in reinforcements and improvements, new businesses, including mergers and acquisitions, and projects that contribute to the expansion of the power transmission system in Brazil.

In 2020, despite the challenges imposed by Covid-19 pandemic, the company was able to sustain its financial strength and recorded expressive results. Regulatory net income reached R$ 2 billion, 64% higher versus 2019.

Investments amounted to R$ 1.3 billion, representing a R$ 534.5 million increase as compared to the previous year - growth of 69% compared to 2019. Most of this was allocated to greenfield projects - around R$ 1.1 billion, which are key for the flow of electricity from renewable sources in the country, contributing to a low-carbon economy. The remaining R$ 231 million was allocated to advancing the company's asset modernization plan, representing an increase of 74% over the previous year.

In new businesses, in addition to the PBTE acquisition, ISA CTEEP executed the first real estate agreement with the Municipality of São José dos Campos (SP) for the development of an urban mobility project in the city.

Finally, the company also delivered Tibagi Electric Interconnection and Itaquerê Electric Interconnection, ahead of the schedule, which will benefit the National Interconnected System (SIN). This year, ISA CTEEP has partially energized Aguapeí Electric Interconnection and is expected to energize 4 to 5 projects.

About ISA CTEEP
With a staff comprising around 1,400 employees, ISA CTEEP is present in 17 Brazilian states, operating a complex transmission network, responsible for the flowing of 33% of all electricity consumed in the country, and 94% of the State of São Paulo. Its electric system comprises over 20 thousand kilometers of transmission lines and 140 substations (in operation and under construction). The Company was privatized in 2006, and its controlling shareholder is ISA Group, holding 35.82% of the total capital.

Media Information

CDI Comunicação
Andresa de Oliveira - [e-mail]
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Márcia Avruch - [e-mail]
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