E.ON boosts stake in Brazil's Eneva

German utility E.ON bought R$120m ($54m) of shares in Eneva, a Brazilian company with renewable and fossil fuel assets including thermoelectric power.

The transaction is the first stage of a capital increase that could eventually total R$1.5bn and may further increase E.ON's minority stake in the company up to 49.9%.

E.ON also took out a R$100m bridge loan from four local banks - BTG Pactual, Banco Citibank, HSBC Bank Brasil and Itaú Unibanco - to help finance restructuring of a R$600m portion of Eneva’s debt.

In 2012, E.ON acquired an 11.7% stake in Eneva's predecessor MPX and raised that stake to 38.7% last year, giving it a presence on the board of directors.

Eneva owns 600MW in wind power projects in Brazil and the 1MW Taua solar plant.