SAO PAULO (Reuters) - A unit of Shanghai Electric Power Co Ltd (601727.SS) has signed a non-binding accord to take majority control of a series of power transmission projects owned by a Brazilian state-controlled utility.
The unit, known as Shanghai Electric Power Transmission and Distribution Engineering Co, will create a special purpose vehicle to oversee the projects directly with Brazil’s Eletrosul Centrais Elétricas SA (ELET5.SA), according to a Monday securities filing. The cost of the project known as Lote A is estimated at 3.27 billion reais ($992 million), the filing by Eletrosul said.
Reuters reported on Jan. 5 that Eletrosul and Shanghai Electric were negotiating a number of transmission lines in the Lote A project.
Reporting by Guillermo Parra-Bernal