Neoenergia shareholders approve IPO of Brazil's largest utility (updated)

Banco Bradesco

31/08/2017 21:16

(Recasts with shareholders approving IPO) 
    SAO PAULO, Aug 31 (Reuters) - Neoenergia SA's shareholders 
voted on Thursday to take Brazil's No.1 power utility public, 
setting the stage for what could be Brazil's largest initial 
public offering (IPO) this year as the company taps growing 
investor demand for the country's electricity assets. 
    In a Thursday securities filing, Neoenergia said 
shareholders led by Spain's Iberdrola SA  IBE.MC  approved 
tripling the utility's capital limit to 12.83 billion reais 
($4.1 billion) from about 3.5 billion reais currently. 
    Apart from Iberdrola, which has a 52 percent stake, other 
shareholders in Neoenergia include pension fund Previ Caixa de 
Previdência  PREVI.UL  and state-controlled lender Banco do 
Brasil SA  BBAS3.SA , which own respectively 38 percent and 9 
percent of the utility.  
    The decision is the first step by Rio de Janeiro-based 
Neoenergia to go public, following the recent acquisition of a 
smaller rival. Reuters reported on July 14 that the utility's 
initial public offering could value the company at around 35 
billion reais. urn:newsml:reuters.com:*:nL1N1K5085 
    Listing Neoenergia, which has the most customers of any 
Brazilian power utility, would give it access to a wide base of 
investors seeking greater exposure to an industry that for years 
has struggled in Brazil with erratic policies, a harsh recession 
and high borrowing costs. The company's owners are analyzing a 
dual listing in São Paulo and New York, Reuters reported. 
    People familiar with the plan told Reuters that Banco do 
Brasil, the shareholder responsible for selecting the banks for 
the IPO, has already picked Banco Santander Brasil SA 
 SANB11.SA , Morgan Stanley  MS.N  and Credit Suisse Group AG 
 CSGN.S  to work on the transaction. Itaú Unibanco Holding SA 
 ITUB4.SA  and Banco Bradesco SA  BBDC4.SA  are also trying to 
join the group. 
    ($1 = 3.1474 reais) 
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
EXCLUSIVE-Neoenergia seeks $11 bln valuation in Brazil, U.S. 
IPO, sources say     urn:newsml:reuters.com:*:nL1N1K5085 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Reporting by Marcelo Teixeira and Luciano Costa; Writing by 
Tatiana Bautzer; Editing by Guillermo Parra-Bernal and Bill 
Rigby) 
 ((Twitter: tx_marcelo; marcelo.teixeira@tr.com; 5511 5644 7707; 
Reuters Messaging: 
marcelo.teixeira.thomsonreuters.com@reuters.net)) 
 
Keywords: NEOENERGIA NEWISSUE/