Omega Energia, a renewable energy company controlled by manager Tarpon together with founder Antonio Bastos Filho, has just closed a transaction that could transform the business, bringing the private equity firm Actis to the group of shareholders and guaranteeing an investment of Rs. $850 million to fund the company’s expansion.
Under the terms of the agreement, Actis will acquire 10% of Omega’s shares on the secondary market. With a 34.8% stake, Tarpon granted the private equity firm options to acquire this stake, at a price of R$13.50.
Currently, Omega’s shares are trading at R$10.18 (valued at R$5.8 billion, the company lost 20% of its market value in 2022). To acquire the stake in Omega, therefore, Actis will spend almost R$ 770 million — 56.9 million shares, equivalent to 10% of the total capital.
The transaction takes place six months after the combination of Omega’s generation and development assets, a process that required the (tight) endorsement of minority shareholders, but which transformed the company into a business with operating assets capable of exceeding 4,500 MW in operating until December 2024.
Omega Energia wind farm in Piauí — Photo: Disclosure
When it reaches 10%, Actis will become part of the shareholders’ agreement alongside the controllers, in a document that will regulate the appointment of members to the board of directors and will have the approval by consensus among the partners for some matters.
Alongside the secondary investment, Actis is also committing to a substantial investment in Omega. Under the terms of the agreement, the private equity firm signed a commitment to invest up to R$850 million. Omega will be able to call on this capital, through an issue of shares priced at R$16, until March 2023.
To Pipeline, an important partner at Omega said that the arrival of the strategic investor will finance the company’s expansion plan, which provides for internationalization with the arrival in the United States.
In the material fact that breaks down Actis’ investment, the company also announced that it has signed a memorandum of understanding to buy the rights to a wind farm project in Texas, with a projected installed capacity of 531 megawatts.
The acquisition of this project, which is not yet completely closed, could bring more investors to Omega. In the US, an undisclosed partner may invest up to US$500 million in renewable energy projects developed or acquired by Omega in the US market.