Germany-based utility E.ON is set to invest €200m ($275m) in Brazil-based energy company Eneva, increasing its 38% share in the company to a larger minority stake, Reuters has reported.
E.ON paid an initial $366m for a 10% stake in Eneva, then called MPX Energia, in January 2012. It increased its share to 37.9% as MPX chairman Eike Batista encountered financial difficulties and was forced to cut his share to 24%.
Eneva has about 2.4 GW of power generation capacity in operation and more than 500 MW under construction.
However, the company has faced difficulties as the Brazilian economy has stagnated, and it recorded a R$944m ($426m) loss in 2013, causing its debt to rise to almost $967m. E.ON has committed a reported €1.3bn ($1.8bn) to Eneva so far without it turning a profit.
– Photo of Pecém I & Pecém II thermoelectric plants courtesy of Eneva