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Market Cap £34.00bn
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Position in Universe 262nd / 6854

Brazil's Cemig Telecom attract 16 bidders -source

Fri 15th June, 2018 5:17pm
By Luciano Costa
    SAO PAULO, June 15 (Reuters) - Brazilian utility Companhia
Energetica de Minas Gerais  CMIG4.SA  has received far more
interest than expected in the sale of its telecommunications
assets, attracting 16 groups interested in bidding, a person
familiar with the matter told Reuters.
    Cemig, as the company is widely known, plans to auction the
assets of its telecoms unit, Cemig Telecom, for a minimum of 367
million reais ($96.9 million) as part of a plan to reduce its
large debt load. 
    But the interest level in the unit, and its fiber optic
network stretching 5,900 miles (9,500 km) across some of
Brazil's wealthiest and most industrial states, could push up
that figure.
    The 16 interested parties have signed confidentiality
agreements in order to participate in this stage of the process,
the person said.
    "The interest was surprising, a lot more favorable than
imagined. They are big companies," the source said.
    Cemig did not immediately respond to a request for comment.
    Interested companies include telecoms like Claro SA, a unit
of Mexico's America Movil SAB de CV  AMXL.MX , as well as
infrastructure operators such as American Tower Corp  AMT.N  and
Phoenix Tower, according to the source.
    Reuters previously reported that Telefonica Brasil SA
 VIVT4.SA , TIM Participacoes SA  TIMP3.SA , Vogel Solucoes em
Telecomunicacoes e Informatica SA, Algar Telecom SA and Aloo
Telecom were interested in the assets.*:nL2N1QO1DF
    Representatives for Claro, Telefonica Brasil, TIM, Vogel,
Algar, and Blackstone Group LP  BX.N , which owns Phoenix Tower,
did not immediately respond to requests for comment on Friday.
American Tower Corp declined to comment. Representatives for
Aloo could not immediately be contacted.
    Vogel had confirmed to Reuters in March it was interested in
Cemig Telecom, while Telefonica Brasil's chief operating
officer, Christian Gebara, told Reuters in April the company was
looking closely at the unit.*:nL2N1QO1DF*:nL1N1RN0NC
    The public auction is projected for July 25 with results to
be announced on July 27. The sale will be divided into two lots,
the first to include Cemig's fiber network in Minas Gerais, Sao
Paulo and Rio de Janeiro states, with the second to be held for
its network in Goias, Bahia, Pernambuco and Ceara states.
    ($1 = 3.79 reais)

 (Reporting by Luciano Costa; Additonal reporting by Gram
Writing by Jake Spring; Editing by Tom Brown)
 ((; +55 61 99653-2429; Reuters
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