The investors of CPFL Energia (CPFE3) did not like the fact that company have reduced the dividends with the intention of possibly participating in the distribution concession in the Cearásays the UBS in report.
The company informed that it analyzes the possibility of purchasing the distributor Enel Ceara (former Coelce), but highlighted that he also sees other acquisition opportunities.
The company considered, however, that there is no agreement, binding or non-binding, entered into between CPFL Energia and Enel Ceará.
The CEO of the electric company, Gustavo Estrella, said, in an interview with the newspaper Economic valuewhich if all goes well, the acquisition will happen throughout 2023.
“What we did was partially declare dividends relating to 2022 earnings. We did this to hold cash in the eventual acquisition process of Coelce. We are here holding cash for a possible new investment. Coelce is, yes, an alternative and an opportunity that we can have”, he told the newspaper.
“Investors are more cautious with the name seeing the possibility of CPFL participating in an auction
more competitive than expected to acquire the power distribution concession in Ceará”, says the bank.
Despite that, the UBS notes that the electric company has strong cash generation and has paid high dividends.
A CPFL Energia recorded a net profit of BRL 1.65 billion in the first quarter of 2023, an increase of 42% compared to the same period last year.
Analysts had expected net profit of 1.38 billion reais, according to data gathered by Refinitiv.
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