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AES Tietê is
a publicly-held company with preferred and common shares traded on
the
São Paulo Stock Exchange (Bovespa) since its creation
in 1999, when the Company was spun off
from Companhia Energética
de São Paulo (Cesp). The Company also has a Level I American
Depositary Receipt program with securities traded on the US over-the-counter
(OTC) market.
The respective ticker symbols are:
Bovespa
GETI3 for common shares
GETI4 for preferred shares
OTC
CDEEY for the ADRs representing common shares
CDEOY for the ADRs representing preferred shares
In February 2005, there was a capital contribution, in order to
capitalize part of the already
amortized goodwill reserve in benefit
of the controlling shareholder. There was an issue of
823.7 million
common shares and 791.5 million preferred shares, in the total
amount of
R$ 59.1 million. The proportion of common and preferred
shares was maintained the same
—
48% preferred shares and
52% common shares.
In 2005, the Company’s shares became part of the Índice
Brasil (IBrX 100). This index measures
the return of a theoretical
portfolio composed of the Bovespa’s 100 most traded stocks
and
those with the highest financial trading volume over the past
12 months.
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| Secondary Public Offer |
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In June 2005, a secondary
public offer of shares was concluded, carried out by a group of minority
shareholders – Banco Banespa, Banco Santander and Banco Nossa
Caixa. These shareholders together
held the equivalent of 45.1% of
AES Tietê’s preferred shares and 12.8% of its common shares,
which represented 28.4% of the total capital.
The price of the offer was R$ 40.00/thousand preferred shares and R$
36.50/thousand
common shares, and the total amount of the offer was
R$ 1.06 billion. Approximately 80% of the
shares that were offered
were acquired by foreign investors and 20% was acquired by local investors.
As of the operation, the Company’s free float rose from 11.8%
to 39.6% of the total capital,
which led to a significant increase
in the liquidity of the Company’s shares on the Bovespa.
In support to the selling shareholders during the transaction the Investor
Relations Department
took part in a roadshow, with presentations for
investors in Brazil, Europe and in the United States. |
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| Shareholding Structure |
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AES Tietê is
controlled by the AES Group, one of the world largest energy corporations,
and by the Brazilian Economic and Social Development Bank (BNDES),
through
Brasiliana Energia S.A., created at the end of 2003. |
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| Share Performance |
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In 2005, AES Tietê’s
common shares (GETI3) appreciated 54.8% while its preferred
shares
rose 58.1%, compared to the increase of the Ibovespa by 27.7% and the
rise of the
Electric Energy Index of 42.9%. The Company’s market
capitalization increased 45%,
going from R$ 3.3 billion at the end
of 2004 to R$ 4.8 billion on December 31, 2005.
This evolution reflected,
among other factors, the recognition of the good results obtained,
the increase in the free float of the shares, the positive prospects
and the efforts of the
Company to become closer to and communicate
better with the capital markets.
After the conclusion of the secondary public offer in June 2005, there
was a significant
increase in liquidity. Until then, AES Tietê’s
common shares (GETI3) were more liquid because
the volume of preferred
shares (GETI4) available in the stock exchange was smaller.
As the
public offer brought a volume equivalent to 45.1% of the Company’s
preferred shares
it allowed the increase in the liquidity of this class
of security. The preferred shares ended
the year quoted at R$ 50.90
per thousand shares and were traded in 86% of the Bovespa’s sessions.
A total of 5,924 trades were recorded over the year involving approximately
9.5 billion shares,
which represented increases of, respectively, 240.7%
and 120.9% compared to the Bovespa
trading in 2004.
The common shares (GETI3) ended the year quoted at R$ 50.00 per thousand
shares and
traded in 98% of the Bovespa’s sessions. A total of
4,756 trades were recorded in during 2005,
involving approximately
9.7 billion common shares. The average daily trading volume was
R$
1.6 million, which represented an increase of 68.4% compared to 2004. |
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| Shareholder Remuneration |
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With strong earnings,
solid cash generation and a fully aligned capital structure, AES Tietê
has
paid compensation to shareholders at amounts that are considerably
higher than the
minimum established by the Company By-Laws. The distribution
of dividends in 2005 totaled
R$ 539.0 million, which corresponds to
96.9% of 2005 net income. The amount of legal
reserve reached R$ 17.1
million, or 20% of capital stock — the limit set by the legislation,
what allowed the Company to distribute to its shareholders more than
95% of its net income. |
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