Brazil’s Previ fund sells stake in CPFL Energia group to China State Grid

26 September 2016

The board of the Pension Fund of the Bank of Brazil (Previ), the country’s largest pension fund, has decided to sell its 29.4% stake in CPFL Energia to the China State Grid group, according to market filing.

The Chinese group announced in July it had reached an agreement with the Camargo Corrêa group to buy the 23.6% stake that it held in CPFL Energia, a deal that was subsequently approved by the Administrative Council for Economic Defense (CADE), paving the way for other shareholders to sell their holdings.

The purchase of the stake of Brazilian group Camargo Corrêa cost the China State Grid Corporation 5.85 billion reais (US$1.82 billion), according to information disclosed to the market at the time.

CPFL Energia is one of the major energy groups in Brazil, with companies operating in the production, distribution and sale of electricity, as well as in services and renewable energy.

Bonaire Participações, a private company controlled by investment fund Energia São Paulo FIA, in turn controlled by pension funds Fundação Cesp, Fundação Petrobras de Seguridade Social, Fundação Sistel de Seguridade Social and Fundação Sabesp de Seguridade Social, announced it would reveal next Tuesday whether it planned to sell or keep its 15.1% stake in CPFL Energia. (macauhub)