OREANDA-NEWS. MPX Energia announces that the company’s Board of Directors agreed on a private capital increase of BRL 800 million at BRL 6,45 per share, based on today’s closing price for MPX common shares at BM&F Bovespa.

E.ON is supporting this capital increase by investing approximately BRL 366 million. BTG Pactual will cover the reminder not subscribed by minority shareholders of the company, which will have preferential rights to participate in the operation.This private capital increase is replacing the originally envisaged public offering after market conditions have substantially worsened in the last few weeks.MPX was informed today by its advisors and lead arranger BTG Pactual that it recommends a postponement of the offering or implementation with material changes.

This recommendation was justified with the current adverse equity market in Brazil and abroad. The amount of money collected via this capital increase will contribute to strengthen the capital structure of MPX, supporting to fulfill its business plan.Eike Batista resigned from the Board Directors. Jorgen Kildahl, Member of the Board of Management of E.ON SE and former Vice-Chairman of the Board, was nominated as interim Chairman.”MPX is an operating company with about 2,000 MW in power generation projects in operation. The company invested more than U.SUSD 10 billion in assets, which help to ensure the energy supply for the country. Throughout these years, MPX has positioned itself as a leading private power Company in Brazil, with world-class strategic assets. In this new phase, I trust that the company will continue in its development process, having as strategic partner E.ON, the biggest German utility”, said Eike Batista.

Jorgen Kildahl stated: “E.ON appreciates Eike’s great contribution to developing MPX to one of the most attractive energy companies in Brazil since he founded it in 2001. Building on this, E.ON now is supporting the further development of MPX, a fundamentally solid company, and the successful implementation of its ambitious and promising project pipeline. The power generation projects will play a key role in enhancing Brazil’s security of supply and are an integral part the country’s infrastructure.”“On behalf of MPX Executive Committee and all employees, I would like to thank Eike Batista for the extraordinary leadership during the last six years as MPX Chairman. Eike’s participation was fundamental to our achievements, inspiring us with his entrepreneur vision for the construction of energy generation assets that will serve not only the current, but also the future generations of our country”, said Eduardo Karrer, MPX CEO.

To underscore the importance of this new setup, MPX will be rebranded and its headquarters relocated to the offices of the existing E.ON-MPX joint venture. Currently, the company is also making preparations to bid in auctions for new generating capacity.MPX has 1,780 MW of generating capacity in operation and a further 1,114 MW that will come online by 2013. Additionally, the company owns a 10,000 MW greenfield pipeline composed mainly by thermal power projects, which should play an increasingly important role in the Brazilian energy system in the coming years.