In July, the Brazilian transactional market continued the trend set in June, with 63 deals registered compared with 59 in the same period last year. This was close to the average registered in the last 12 months; 64 deals in total. In July, the investment volume generated was R$ 9,9bn, compared with R$ 11bn recorded in the same period last year, taking into account deals with disclosed value. In July, approximately 8% of the total deals correspond to the mid-market in deal size (>R$ 500m), generating some R$ 8,2bn.
This month's largest deal was recorded in the electric subsector. Energisa signed an agreement to acquire Brazil-based group Rede Energia, a company facing bankruptcy. The agreement includes a R$ 1,95bn payment to the creditors, plus an initial amount of R$ 1,1bn for investments. Nonetheless, this deal is still subject to approval from the relevant authorities and from certain creditors and investors, as well as approval of the recovery plan for electricity distributors, submitted to the National Agency of Electric Energy (Agência Nacional de Energia Elétrica).
The seventh IPO of the year was registered in July, through a primary and secondary issue of 82,7 million shares. This deal generated R$ 1,035bn.
Deal of the month - July 2013 - CPFL Energias Renováveis