Votorantim and Canadian fund create energy company focused on decarbonization

RIO – The Votorantim group and the investment arm of the Canadian pension fund Canada Pension Plan (CPP Investments) are reorganizing their assets in the electricity sector to create a new company, focused on the energy transition. This company will be part of the VTRM Energia Participações SA holding, which will be listed on the Novo Mercado de B3, the São Paulo Stock Exchange.

The Novo Mercado is a segment of the Stock Exchange launched in 2000, aimed at trading the shares of companies that voluntarily adopt corporate governance practices in addition to those required by Brazilian law.

VTRM’s corporate reorganization was communicated through an important fact disclosed by Companhia Energética de São Paulo (Cesp) on Monday evening. VTRM currently holds 40% of the shares of Cesp and, upon completion of the transaction, will own 100% of the shares of the company.

At the end of the transaction, the shares of Cesp will be incorporated by VTRM.

In addition, given the current structure of the company, Votorantim and CPP Investments each own 50% of the shares of VTRM. With the change, the Votorantim group will have 54.2% and the CPP will have 45.8%.

The so-called New VTRM will integrate the hydroelectric assets and Votorantim Comercializadora de Energia (Votener), in addition to a new company that will be created, focusing on the process of energy transition in Brazil. will invest in projects at an early stage of maturity, including new solutions and technologies aimed at decarbonizing the energy matrix.

The operation also provides for the contribution of 2.5 billion reais from Votorantim and 1.5 billion reais from the CPP.

“After the reorganization, Nova VTRM will be one of the main listed companies in the Brazilian power sector, with a diversified portfolio of 100% renewable energy production, totaling 3.3 GW of installed capacity under management, of which 2.3 GW of water source and approximately 1.0 GW of wind power (comprising 0.6 GW of assets in operation and 0.4 GW of projects at an advanced stage of construction, scheduled to come into service between May and November 2022). Nova VTRM will also be one of the largest power stations in the country, with more than 2.6 GW on average sold in 2020, “the statement said.