CPFL Wins Bid for CEEE-T Equity

On July 16 Brazil local time, the bidding process for the 66.06 percent equity sale of CEEE Transmission (CEEE-T) from the government of Rio Grande do Sul in Brazil, was held at the Sao Paulo Stock Exchange. State Grid's subsidiary (83.71 percentd owned), CPFL Energia S.A., a major listed company in the power sector in Brazil, won the bid with its offer of BRL 2.67 billion after multiple rounds of competition.

CEEE is among the top 10 power transmission companies in Brazil. It owns 6,000 kilometers of transmission lines and 72 substations, accounting for 4 percent of Brazil's total transmission assets. Investing in CEEE-T enables CPFL to reach a milestone of its strategic plan, grow its transmission business by leaps and bounds, and enhance its portfolio, sustainability and market value. CPFL will fully leverage its experience in providing power distribution services for Rio Grande do Sul, forge a synergy between its distribution and transmission arms so as to better manage its assets and operations for greater performance and contribution to the local society and economy.

The win is also attributed to State Grid's commitment to running international business in line with market rules and local conditions for long-term growth. Focusing on grid system operation and quality corporate management, State Grid supports overseas affiliates' efforts to take well-conceived steps to tap local markets for sustained growth of its international business. State Grid is committed to building a world-leading energy internet company with Chinese characteristics and contributing to the Belt and Road Initiative.