COPEL in R$5.2 Billion Privatization

Cleary Gottlieb represented Companhia Paranaense de Energia (COPEL) and the State of Paraná in the privatization of COPEL.

The privatization involved a R$5.2 billion global offering of common shares of COPEL, including public offering in Brazil and an SEC-registered offering in the United States. This was the first time that an energy company controlled by a Brazilian State was privatized through a capital markets transaction. Following this transaction, the State of Paraná will hold approximately 17% of COPEL’s total capital, and COPEL will cease to be a state-controlled company. As part of the privatization, the State of Paraná will receive a newly-created golden share, providing veto power over certain corporate resolutions. The global offering closed on August 11, 2023.

COPEL is one of the largest electricity companies in Brazil, and is engaged in the generation, transmission, distribution, and sale of electricity. COPEL operates in 10 different Brazilian States and is the main electricity utility company in the State of Paraná. COPEL common shares, preferred shares, and units are publicly traded on B3, and ADRs representing COPEL units trade on the NYSE.

The underwriters were BTG Pactual, Itau BBA, Bradesco BBI, Morgan Stanley, and UBS-BB.