Evoltz Transmission Company acquired the share interest of 49.5% from Eletrobras in Manaus Transmissora de Energia (MTE), a special purpose company that holds the concession for a transmission line in the Northern region of the country.

The purchase cost R$ 232 million and took place within the scope of a competitive process established by Eletrobras last year for the sale of equity interests not sold in a previous auction. The transaction still needs to go through the Agência Nacional de Energia Elétrica (Aneel) and the Conselho Administrativo de Defesa Econômica (Cade). Once approved, Evoltz will be the full controller of the line, which is 558 kilometers long and runs through 12 municipalities in Pará and Amazonas.

According to the Evoltz CEO, João Nogueira Batista, the acquisition fits the company's strategy of becoming a relevant entity in the energy transmission segment.

Still little known, Evoltz is controlled by an investment fund under the management of TPG Capital and it was created to gather the operational transmission assets acquired by the American manager in the judicial recovery process of Abengoa in Brazil. For the past two years, the company has been in a process of "reorganizing the company", which involved cleaning out liabilities and financial restructuring, and now it has been building up a strategy to expand its operations.

Today, the company holds seven transmission lines, with approximately 3.5 thousand kilometers, concentrated in the region of the Amazonia Legal, which add up to allowed annual revenue (AAR) of approximately R$ 500 million.

Batista points out that the transaction with Eletrobras only developed in the midst of the crisis generated by the covid-19 pandemic due to the regulatory framework for the electricity sector, which inspires confidence and serenity for investors. "If we were talking about another sector, without a regulatory agency like Aneel, or a recognized regulatory framework, it would certainly not make any progress."

According to the CEO, the company remains focused on the corporate consolidation strategy by means of the acquisition of minority shares, over which they have preemptive rights. In addition to MTE, Evoltz bought, at the end of last year and for an undisclosed amount, the Embrade’s interest (BMG group) in the “ATE VIII” line, located in Pará.

Evoltz has partners in two projects, including the largest in its portfolio: Norte Brasil Transmissora de Energia (NBTE), a direct current line with 2,400 kilometers that connects Rondônia to São Paulo. This concession is shared with Eletronorte, which holds a 49% share interest. In a minor asset, ATE IV, 23.6% shares belong to the Spanish state-owned development company Compañía Española de Financiación del Desarollo (Cofides).

Given the current market condition, the Evoltz CEO believes that it would be “premature” to talk about new investments . (L.F.)