Brazilian bank holding company Itaú Unibanco Holding SA plans to invest 600 million reais ($154.6 million) in a power company controlled by energy distribution company Energisa SA.
Under the terms of the deal, Energisa has an option to acquire Itaú’s stake in Energisa Participações, an entity of the Energisa group.
With the investment, Energisa will improve its cash position as well as deleveraging it after two recent acquisitions.
As a result of the transaction, Itaú will hold a 12.3 percent stake in Energisa Participações, after proceeds are used in a capital increase.