Announcement to the Market - CPFL Renováveis - Closing of the acquisition of Usina Ester co-generation assets

distributed by noodls on 10/19/2012 03:17

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In compliance with Article 157, Paragraph 4 of Law 6,404/76 and the Brazilian Securities and Exchange Commission - CVM Instruction No. 358/2002, CPFL Energia S.A. ("CPFL Energia") informs that CPFL Energias Renováveis S.A. ("CPFL Renováveis") has released, on the date hereof, the following Announcement to the Market:

"CPFL Energias Renováveis S.A., a publicly-held company with headquarters in the City of São Paulo, São Paulo State, at Avenida Dr. Cardoso de Melo, 1184, 7th floor, Vila Olimpia, CEP 04548-004, corporate taxpayer's ID (CNPJ) number 08.439.659/0001-50 ("Company" "buyer"), announces to the market that concluded, on the date hereof, the transaction that was object of the Announcement to the Market on March 12, 2012, related to the acquisition of co-generation assets of electric energy and steam from the SPE Lacenas Participações Ltda. ("SPE Lacenas"), a controlled company of Usina Ester ("Usina Ester" "seller"), which holds an authorization granted by the National Electric Energy Agency ("ANEEL") to exploit energy from biomass produced by the crushing of sugarcane and with an installed capacity of 40.0 MW.

The total acquisition price of the assets after the adjustments under the contract is R$ 111.5 million, comprising: (i) the amount of R$ 55.2 million to be paid by the buyer to the seller on the date hereof; and (ii) the assumption of net debt of R$ 56.3 million.

Usina Ester has a contract of 7 average MW that was sold in the 2007 LFA Auction with expiration in December 2024. The remaining power, equivalent to 3.2 average MW, was sold to the Free Market until December 2012 and, from January 2013 to December 2025, to CPFL Brasil."

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