Sale of Terna Participações

On November 3, 2009, in implementation of the sale agreement signed on April 24, 2009 between Terna S.p.A., Cemig Geração e Transmissão S.A. (“Cemig GT”) and Companhia Energética de Minas Gerais (“Cemig”), the sale of the equity investment held by Terna in Terna Participações S.A. to TAESA S.A. (“TAESA”), a company held by Cemig GT and FIP (Fundo de Investimento em Participações) Coliseu, which brings together a number of Brazilian investors, was completed.
The overall price, including the adjustment envisaged in the sale agreement, was R$2,148.4 million, equal to R$12.38 per share and R$37.14 per share depository receipt (or unit, representing one ordinary share and two preference shares).
On October 26, Terna Participações distributed a dividend of R$1.15 per share, equal to R$3.44 per unit. The amount already paid to Terna in respect of its holding came to a total of R$199.2 million (about €77.5 million).

The transactions generated a total of R$2,347.6 million for Terna. The corresponding value in euros, net of hedging transactions carried as from the signing date, is equal to €797 million.
On October 28, Terna also received repayment of the intercompany loan, granted to Terna Participações in February 2009, in the amount of R$540.1 million (equal to about €180.3 million net of Brazilian withholding tax and the cost of hedging the exposure). With the repayment, all intercompany relationships between Terna and Terna Participações ceased.
The transaction was completed after fulfilment of the conditions governing the effectiveness of the agreement, i.e. approval of the local regulatory authority (ANEEL, Agência Nacional de Energia Elétrica).
As envisaged under Brazilian law and the bylaws of Terna Participações, the change of control requires TAESA to undertake a public tender offer for the remaining shares of Terna Participações at the same per-share price. Terna holds an additional 10,000 units, which it will sell within the framework of the offer, scheduled for April 19, 2010 as of the date of the preparation of this document.