Aes Tiete Shareholders Agreement

- December 01, 2020

In an interview with Reuters on Thursday, Marcelo Habibe, Eneva`s chief financial officer, said that eneva would ultimately receive 70 percent of the new company if the deal was accepted and that current shareholders of AES Tiete would own 30 percent. Eneva issued a statement on Tuesday in which it said it would “continue to work to add value to its shareholders, focus on developing its business plan and always be attentive to opportunities that represent the best interests of all shareholders and stakeholders.” August 6 (Renewables Now) – Brazilian energy group AES Tiete Energia SA (B3:TIET11) has signed an agreement to purchase all of the equity in a 187 MW wind portfolio of J Malucelli Energia SA and other anonymous shareholders. The company will properly inform its shareholders and the market in general of the evolution of the object of this essential fact. In addition to AES Corp`s offer to the only state-controlled lender, BNDES and all shareholders of AES Tiete received a proposed merger of energy company Eneva SA ENEV3.SA containing cash and shares on Monday, with a 17% mark-up above the market value of AES Tiete at the time. AES TIET-ENERGIA S.A. (“AES Tieté” or “Companies”) (B3: TIET11, TIET3, TIET4), pursuant to Article 4, Section 157 of Federal Law 6.404/76 and CVM 358 of January 3, 2002 and other applicable provisions are shared with their shareholders and the market in general, that it was informed by its indirect majority shareholder, THE AES CORPORATION (“AES”), that AES was acclaimed with BNDES PARTICIPA-ES SA (“BNDESPAR”), a contract for the acquisition of 73,834,706 shares, or 18.5% of the total capital of AES Tieté (“transaction”). AES Tiete`s shares, consisting of one common share and four preferred shares, were incorporated as shareholders of the energy company in the absence of an agreement. These facilities, called the Ventus Wind Complex, are located in the state of Rio Grande do Norte and have been in operation since 2014. All have power purchase contracts (AAEs) valid until May 31, 2034. Finally, in accordance with AES Tieté`s value creation strategy, AES has indicated that it agrees to submit to the Board of Directors and other shareholders of the company, within a maximum of 6 (6) months after the closing of the transaction, a proposal to include AES Tieté in the B3 special listing segment called Novo Mercado. This initiative benefits the company and its shareholders, both for the improvement of the governance practices required by the Novo Mercado Regulation and for the expected increase in the liquidity of their shares.

“By increasing our participation in AES Tieté`s 3.7 GW renewable energy platform, we are strengthening our commitment to reduce our total coal production to less than 30%,” said Andrés Gluski, AES President and Chief Executive Officer. “Following this transaction, we plan to transfer the listing of AES Tieté to Novo Mercado, the highest corporate governance segment of companies listed on the Brazilian stock exchange, which is expected to free up the value of AES Tieté for the benefit of all shareholders.” BNDES Participacoes, a holding company of the Brazilian state-based bank BNDES, is one of the main shareholders of AES Tiete, which is ultimately controlled by Virginias AES Corp (AES). N).

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