Material Fact – Acquisition of La Virgen

Posted in: 03/07/2014

Material Fact – Acquisition of La Virgen

ALUPAR INVESTIMENTO S.A. (“Companhia” or “Alupar”), a publicly-held company registered with the Brazilian Securities and Exchange Commission (“CVM”) under number 2149-0, pursuant to Article 157, paragraph four, of Law 6404, of December 15, 1976, as amended, and CVM Instruction 358 of January 3, 2002, as amended, hereby informs its shareholders and the market in general that, on this date, and as authorized by its Board of Directors, it acquired seven million, one hundred and seventy-six thousand (7,176,000) common shares issued by the Peruvian company La Virgen S.A.C., which represent sixty-five percent (65%) of the total and voting capital stock of said company, for the amount of three million, five hundred and twenty-five thousand dollars (US$3,525,000.00), held by Peruana de Energía S.A.A..

La Virgen S.A.C. holds, in compliance with Peru’s laws, the concession, for an undetermined period of time, of the project of the La Virgen hydroelectric power plant, with approximate capacity for sixty-four megawatts (64 MW), located in Chanchamayo, Perú, to be developed by means of the “Contrato de Concesión de Generación No. 253-2005, dated October 7, 2005, executed with the Ministry of Mines and Energy”, and the “Contrato de Concesión de Transmisión No. 313-2008, dated June 11, 2008, executed with the Ministry of Mines and Energy”. The project will include the 138 kV La Virgen – Caripa transmission line, with length of approximately 62.57 km, as well as the complementary electrical works for the connection: (i) in the new Electric Substation La Virgen 13.8/138 kV, and (ii) in the expansion of the Substation Caripa 138 kV.

Total investments in this new project are estimated at approximately one hundred and five million dollars (US$105,000,000.00).

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