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EDP Brasil, a company operating in all segments of the electricity value chain, has signed an agreement for the acquisition of 14.5% of the shares of Centrais ElŽtricas de Santa Catarina S.A. (CELESC), corresponding to the stake controlled by PREVI (Banco do Brasil Employees Pension Fund).With this agreement, the company strengthens its investment in the state of Santa Catarina, where it already has a Transmission project.

The first stage of the transaction amounts to an investment of R$230 million, involving the acquisition of 33.1% of the voting capital (5.141 million shares) and 1.9% of the preferential shares (437.800) thousand), which corresponds to 14.5% of the overall capital. EDP Brasil will also make a Public Equity Offering and may acquire up to 32% of CELESC stock, which would increase the company stake to 33.6%.

"With this agreement, EDP wants to strengthen its strategic presence in the distribution segment in Santa Catarina, where the Group had already made the decision to invest by winning the bid for lot 21 in the Transmission Auction that was held in April this year," says EDP Brasil CEO Miguel Setas. "We see our investment in CELESC as a crucial step in the consolidation of our presence in Brazil, where EDP has been operating for more than 22 years," Setas points out.

Earlier this year, EDP had signed a partnership agreement with CELESC for the expansion of the electricity structure in the south of Santa Catarina, adding more than 485 kilometers of lines and a substation to the system. Forming a consortium with the Santa Catarina distributor was the initial step in this partnership.

The acquisition of a significant stake in CELESC, along with the recent investments in the transmission segment, which will amount to R$3.1 billion over the next five years, are part of a strategy of growth focusing on new segments of the value chain in the area of regulated grids, following a cycle of growth that had focused on the generation segment, such as the construction of the Jari TPP, the Cachoeira Caldeir‹o TPP, and, more recently, the S‹o Manoel HPP.

About EDP Brasil

With more than 20 years experience in Brazil,EDP Brasil is now worth about R$9 billion - three times more than when it became a publicly - traded company in 2005. It employs about 10,000 workers(direct and outsourced) and operates 14 hydroelectric generation units and 1 thermoelectric plant,totaling 2.8 gigawatts(GW) of installed capacity.The company serves more than 3.3 million customers in the Distribution segment(EDP S‹o Paulo and EDP Esp’rito Santo) and has an intense activity in the Services and Trading segments.It is one of the five largest private companies in the electricity sector, and it operates in all segments of the electricity value chain(energy generation, transmission, distribution, trading and solutions).It is a leading company in areas such as Governance and Sustainability,and it has been listed for 12 consecutive years on the B3 Corporate Sustainability Index(ISE).EDP was also voted the most sustainable company in Brazil by Exame magazine Sustainability Guide.Ê More recently,EDP Brasil has taken a leading role in the digital transformation agenda by being the first company in the electricity sector to implement process automation systems.

About Celesc

Centrais ElŽtricas de Santa Catarina S.A. - CELESC is a semi-public company that has been engaged in energy generation, transmission and distribution since 1955. Over this period, the company consolidated its position as one of the major players in the Brazilian electric power industry, drawing international recognition for the quality of its services and its performance in the technical, economical, environmental and social fields. In 2006, in accordance with the regulations governing the electric power industry in Brazil, CELESC was restructured as a holding company with two wholly-owned subsidiaries: Celesc Gera‹o S.A., which has 12 operational plants with 106.75 MW capacity, and Celesc Distribui‹o S.A., which serves more than 2.8 million customers in Santa Catarina The three companies employ about 3,000 workers.