CPFL Energias Renovaveis eyes Energisa's Brazil power unit - report

Aug 20, 2014 - The power generation arm of Brazilian energy company Energisa SA (BVMF:ENGI3) has drawn interest from renewable energy firm CPFL Energias Renovaveis SA (BVMF:CPRE3) among others, Bloomberg said today.

The unit Energisa wants to sell operates small hydropower, solar, wind and biomass plants as well as thermoelectric facilities. The particular assets are worth between BRL 500 million (USD 222m) and BRL 1 billion, two knowledgeable sources told the news agency.

Other parties that are said to be keen on acquiring the business include electric utility Neoenergia SA (BVMF:GNAN3B) as well as sector players Electra Energy and Companhia Energetica de Minas Gerais (BVMF:CMIG4), also known as Cemig.

One of the informed people said that Energisa would shortlist suitors by the end of the month. US investment bank Goldman Sachs Group Inc (NYSE:GS) has been appointed to manage the sale process, the sources added. Earlier this month, Energisa said in a regulatory filing it had not made a decision on the potential disposal.

When contacted by Bloomberg about the information, a representative for Energisa replied in an e-mail that the company always considers ways to boost its capital structure. The other involved parties did not wish to comment on the matter to the news agency.

(BRL 1.0 = USD 0.445/EUR 0.335)

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