AXIA Energia S.A. Announces Partial Mandatory Redemption of Class “C” Preferred Shares and ADSs

AXIA Energia S.A. has announced a partial mandatory redemption of 576,923 Class “C” preferred shares and corresponding American Depositary Shares (ADSs), totaling R$30,000,000.00. The redemption, approved by the Board of Directors on June 13, 2026, will occur on July 7, 2026, with a redemption price of R$52.00 per share. Holders of preferred shares have the option to convert their shares into common shares at a 1.1:1 ratio instead of redemption. ADSs holders are not eligible for this conversion. The redemption will be applied pro rata to all holders, with fractional entitlements disregarded. Holders of preferred shares will be paid in Brazilian Reais, while ADS holders will receive payment in US dollars after conversion, net of fees and taxes. The filing also details Brazilian and U.S. federal income tax implications for non-resident investors and U.S. holders, respectively, including withholding taxes and potential PFIC status. Holders are advised to consult tax advisors for specific implications. Trading of ADSs not subject to redemption will continue on the NYSE. The company does not expect to be a Passive Foreign Investment Company (PFIC) but notes this is a yearly determination. Backup withholding and information reporting requirements for U.S. holders are also outlined.