BRASILIA, 18 Oct Reuters - Privately-owned Votorantim SA, one of Brazil's largest listed diversified industrial groups, announced a plan to consolidate their energy assets in Brazil to create an integrated renewables platform on Monday.
The joint venture between Votorantim Energia and CPP Investments, Canada Pension Plan's global investment arm, will include another stakeholder, Companhia Energetica of Sao Paulo, known as CESP, power generation company.
CPP Investments will invest an additional 1.5 billion reais C $340 million to increase the venture capital base, the companies said.
The new company would have a net income estimated to 5.8 billion reais based on the 2020 results and an energy matrix with installed capacity of 3.3 gigawatts GW of which 2.3 GW are hydroelectric sources and 1.0 GW in wind power, they said.
The company was already born with a pipeline of projects that combine hydro and solar sources, as well as hybrid solutions. Totaling 1.9 GW, the company said in a statement.
The new company will also be one of the biggest energy traders in Brazil, with more than 2.6 average GW sold in 2020 and a portfolio of over 400 customers.
By consolidating our assets in a single company, Votorantim and CPP Investments will start a new cycle of growth and value generation together with CESP's shareholders, said Joao Schmidt, Votorantim's chief executive.