SOURCE: MPX Energia S.A.

February 19, 2008 20:22 ET

Eike Batista Transfers Interest to MPX Energia S.A.

RIO DE JANEIRO, BRAZIL--(Marketwire - February 19, 2008) - MPX Energia S.A. ("MPX"), in compliance with the provisions of Article 157, paragraph 4 of Law No. 6,404/76 and Instruction No. 358/02 of the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CVM"), hereby informs its shareholders and the market that Mr. Eike Batista, Chairman and controlling shareholder of MPX, today informed the Company and its Board of Directors of his decision to transfer, to MPX at no cost, the direct ownership interest held by Centennial Asset, Mr. Batista's wholly-owned investment company, in MPX's subsidiaries MPX UTE Porto do Açu S.A. ("MPX Açu") and MPX Energía de Chile Ltda. ("MPX Chile"), the special purpose companies that own and develop the UTE Porto do Açu and UTE Castilla projects, respectively.

As a result of Mr. Batista's decision, MPX will, after consummation of this transaction, increase its current shareholding of 70% in each MPX Açu and MPX Chile to 100%, at no cost to MPX and its shareholders. The consolidation of a 100% interest by MPX in MPX Açu and MPX Chile will not, however, represent a change in MPX's strategy to bring partners for the UTE Porto do Açu and UTE Castilla projects, and MPX will, hereafter, receive full benefits of any equity sale in MPX Açu and MPX Chile in the future.

In a statement, Mr. Batista said: "MPX has been executing its business as planned. I believe that the short-term global re-pricing of growth companies and projects has caused a negative effect on MPX's stock price. My decision to relinquish a substantial direct interest in MPX's two main projects is a recognition that my minority shareholders, and investors generally, are long-term partners that deserve sharing the wealth creation of our projects. I strongly believe that the capital market is a permanent and reliable funding source for business growth overtime, and a way to democratize the shareholding ownership."

Mr. Eike Batista will join a conference call tomorrow, February 20, 2008, 11h00 (Brasília)/ 9h00 (US-EST) to discuss the subject. Dial in:

Telephone: +1 (973) 935-8893
Code: 36265229
Replay: +1 (706) 645-9291
Code: 36265229

Contact Information

  • For additional information, please contact:
    MPX Energia S.A.
    Andréa Pereira
    Investor Relations Manager
    Phone + 55 21 2555-5279