China State Grid is negotiating to buy a stake in Brazilian distribution company CPFL Energia, specifically the 23.6 percent owned by the Camargo Corrêa group, financial news agency Bloomberg reported.
CPFL Energia’s main shareholders are Caixa de Previdência dos Funcionários do Banco do Brasil (Previ), with 29.4 percent, Camargo Corrêa, with 23.6%, the Cesp, Petrobras de Segurança Social (Petros), Sistel and Sabesp (Sabesprev) foundations, with a joint stake of 15.1 percent and the remaining 31.9 percent are dispersed on the market.
Based on the market value of CPFL Energia, which is currently 20.8 billion reais (US$6.2 billion), acquiring the stake would cost China State Grid US$1.5 billion or more if a premium on the listed price is paid.
Camargo Corrêa meanwhile told the market it was still analysing strategic opportunities related to its portfolio and added it had made no decision about a possible sale of its stake in CPFL Energia.
State Grid is present in the Brazilian market where it operates around 6,000 kilometres of power transmission lines. In April its subsidiary State Grid Brazil Holding was awarded a tender for the concession of two power transmission lined near the city of Paranatinga, in the state of Mato Grosso. (macauhub/BR/CN)