Eletrobras has privatised its largest distribution company, Amazonas Distribuidora, after a consortium comprising Oliveira Energia and Altem presented the only offer during the auction process on Dec. 10.

The bidding had been postponed several times and Eletrobras had established a deadline at the end of March 2019 for the final attempt to sell the highly indebted company.

The consortium will need to make an initial investment of R$491.4 million ($125.5 million) in the company, in addition to a payment of R$50,000 for the shares, according rules set by the development bank BNDES, which led the auction process.

Oliveira and Altem will also assume Amazonas Distribuidora's R$2.1 billion debt and will need to invest a total of R$2.7 billion in the next five years.

Oliveira Energia and Altem have already acquired another distribution company from Eletrobras, Boa Vista Energia, in the Brazilian state of Roraima.

The sale of Amazonas means Eletrobras has only one distribution company, Ceal, left to find a buyer for. The privatization auction is scheduled for Dec. 19.

Besides Amazonas and Boa Vista, Eletrobras has recently sold Cepisa to Equatorial Energia and two other discos, Centrais Elétricas de Rondônia (Ceron) and Companhia de Eletricidade do Acre (Eletroacre), to Energisa.

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