China's State Grid to delist Brazil's CPFL Renováveis
China’s State Grid will delist Brazilian renewables group CPFL Renováveis from the Brazilian stock exchange Bovespa after it takes control of parent entity CPFL Energia.
CPFL Renováveis has called a shareholders’ meeting to approve the hiring of a consultancy to appraise the company’s value and request the delisting.
State Grid is also taking steps to delist CPFL Energia in Brazil and abroad as part of a tag-along process. The Chinese company concluded in January the acquisition of a controlling stake in CPFL Energia for $5.9bn.
CPFL Energia itself owns a 52% controlling interest in CPFL Renováveis.
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With more than 1.2GW of operating wind and a large project pipeline, CPFL Renováveis is one of two publicly-traded renewable power companies in Brazil – the other is Renova Energia –and one of the largest wind developers and operators in the country.
Chinese companies have been investing in Brazil’s power sector through the acquisition of assets and success in transmission tenders, mainly via EDPRenováveis – which is controlled by China Three Gorges – and CPFL Renováveis itself.
Other Chinese companies have interests in the country’s PV sector, especially in the supply of solar panels.