By Max Bernhard

Enel SpA (ENEL.MI) said Tuesday that it has launched a voluntary offer to acquire Brazilian power distribution company Eletropaulo Metropolitana Eletricidade de Sao Paulo SA (ELPL3.BR) for up to 1.1 billion euros ($1.36 billion).

Enel Brasil Investimentos Sudeste SA, which is fully owned by Enel's Brazilian subsidiary Enel Brasil SA, has launched an offer to buy the entire share capital of Eletropaulo for 28.0 Brazilian reais ($8.25) a share.

"The transaction is in line with the Enel Group's current strategic plan and, if successfully executed, would mark another step forward in strengthening the Group's presence in the Brazilian distribution sector," Enel said.

The offer is made under the condition that more than 50% of the company's share capital are bought, Enel said.

Earlier Tuesday, Iberdrola SA's (IBE.MV) Neoenergia S/A (NEOE3B.SM) agreed to subscribe to a capital increase ahead of a potential full takeover of Eletropaulo, valued at approximately $1.7 billion.

Enel's subsidiary Enel Americas SA will provide Enel Sudeste with the necessary financing for the investment, the company said.

The offer is subject to approval by regulators.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

April 17, 2018 13:52 ET (17:52 GMT)

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