Creditors of Brazil's Grupo Rede Energia SA, a power distributor seeking to exit bankruptcy protection, approved on Friday a takeover plan by rival Energisa SA that would reduce losses on their investments in the company.The plan, under which Energisa would take control of Rede and revamp it, must be submitted for final approval by the bankruptcy court, Thomas Felsberg, Rede's lawyer, said. Creditors voted on Energisa's bid and a bid by CPFL Energia SA and Equatorial Energia SA at an assembly.Debt-laden Rede Energia has been struggling since energy regulator Aneel seized eight of its units last August in an effort to prevent it from halting electricity service in six states. The units, power distributors in different parts of Brazil, are all experiencing financial and operational problems.Rede has long been considered a takeover target as the Brazilian government and private companies raise their market share in power distribution. Consolidation is key for power companies to gain financial and operating muscle.
CPFL Energia SA is Brazil-based holding company engaged in the distribution, generation and commercialization of electric energy in Brazil. Shares of CPL fell by 2.0% or $-0.36/share to $17.66. In the past year, the shares have traded as low as $16.50 and as high as $24.30. On average, 387879 shares of CPL exchange hands on a given day and today's volume is recorded at 558507.
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