Eletropaulo auction pushed back to June 4

Brazilian securities regulator CVM has set June 4 as the new date for the auction concerning power distributor Eletropaulo Metropolitana Eletricidade de Sao Paulo SA (BVMF:ELPL3), it was unveiled today.

The live auction was previously scheduled for May 18. Three companies have already made bids for Eletropaulo and local media reports claim that State Grid Corporation of China is interested in joining the race as well. According to the latest announcement by CVM, offers from new suitors can be submitted by May 14.

The first company that made an offer for Eletropaulo and led to the bidding war was local firm Energisa SA (BVMF:ENGI3). It was followed by Neoenergia SA, which is majority-owned by Spanish utility Iberdrola SA (BME:IBE), and a local unit of Italian utility Enel SpA (BIT:ENEL). Enel Brasil Investimentos Sudeste SA is currently the highest bidder, with a proposal of BRL 32.2 (USD 9.11/EUR 7.61) per share.

Meanwhile, Eletropaulo stated that it is not aware of a plan by China’s State Grid to acquire the 16.84% interest in the Brazilian firm currently held by US-based AES Corp (NYSE:AES). On Monday, Relatorio Reservado quoted an informed source as saying that the Chinese state-run company was keen on offering BRL 40.00 apiece for AES’ stake in Eletropaulo.

(BRL 1.0 = USD 0.282/EUR 0.236)

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