Three firms to bid for Brazil's EMAE in privatization auction, source says

Axia Energia SA

15/04/2024 19:34

By Leticia Fucuchima
       SAO PAULO, April 15 (Reuters) - Three companies have
submitted offers to participate in the privatization auction of
Brazilian power generator EMAE  EMAE4.SA , which is scheduled to
happen on Friday, a source familiar with the matter told Reuters
on Monday.
    EMAE is currently controlled by the state of Sao Paulo,
which owns 97.6% of its ordinary shares and plans to raise at
least 779.8 million reais ($150.26 million) by selling its stake
in the firm.
    O Estado de S. Paulo newspaper reported earlier in the day
that French power giant EDF, Matrix Energia and investment fund
Phoenix had all presented bids for the auction.
    A second source told Reuters that Matrix, a joint venture
between asset manager Prisma Capital and a subsidiary of
Switzerland-based Duferco Group, would indeed participate in the
privatization auction.
    EMAE owns and operates a hydraulic and energy generating
system that stretches across Sao Paulo state. Its main asset is
the Henry Borden hydroelectric plant, with 889 megawatts (MW) of
power.
    EMAE also has Latin America's largest utility Eletrobras
 ELET6.SA  as a relevant shareholder with 64.8% of its preferred
shares. The Brazilian power giant, however, has expressed
interest in divesting the asset in the future.

($1 = 5.1895 reais)

 (Reporting by Leticia Fucuchima; Editing by Angus MacSwan)
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