The auction for sale of energy distributor Eletropaulo Metropolitana Eletricidade de São Paulo has been postponed until 4 June by a decision of the Brazilian Securities Commission, with the players in this sector speculating that China State Grid will put forward a proposal of 40 reais per share, the Brazilian press reported.

If confirmed, this proposal would be 25% more than the highest proposal made so far, the bid of 32.20 reais presented by Italian group Enel through Enel Brasil Investimentos Sudeste, and Spanish group Iberdrola, through Neoenergia, proposed to buy the shares at 32.10 reais each.

The electricity distribution market in Brazil is currently led by CPFL, which is 94.76% owned by State Grid Brazil Power Participações, a subsidiary of the China State Grid group.

Meanwhile, Qu Yang, vice president of State Grid Brazil Power Participações, reported in São Paulo that the Chinese group intends to invest 140 billion reais (US$38 billion) in Brazil over the next five years to be invested in projects for power transmission and production.

Qu said the investment in the transmission segment will exceed 90 billion reais and added that the company is analysing solar and wind energy projects in Brazil, both in the states of Bahia and Rio Grande do Norte and in the south of the country, according to financial news agency Reuters. (macauhub)