Brazil's Auren Energia to bid in privatization auction of power generator CEEE-G, EDF drops out- sources (updated)

Companhia Siderurgica Nacional SA

27/07/2022 17:18

(Adds details, context)
    By Leticia Fucuchima and Tatiana Bautzer
    SAO PAULO, July 27 (Reuters) - Brazilian power holding
company Auren Energia  AURE3.SA  has delivered a proposal to
participate in the privatization auction of power generator
CEEE-G, based in the southern state of Rio Grande do Sul, two
sources with knowledge of the matter said on Wednesday. 
    Auren Energia is controlled by Brazilian conglomerate
Votorantim SA and Canada's CPPIB.
    France's EDF  EDF.PA , which was planning a joint bid with 
Brazilian steelmaker CSN  CSNA3.SA  in the auction on Friday,
has dropped out earlier this week, the sources added, asking for
anonymity to disclose private discussions.
    Proposals to participate in the auction, which has a minimum
price of 837 million reais ($158 million) were delivered on
Tuesday. The auction will be held on Brazilian stock exchange B3
headquarters on Friday afternoon.
    Power generator CEEE-G owns 990 megawatts (MW) in installed
capacity, mainly from hydroelectric dams. Including stakes in
other companies, its portfolio reaches 1.27 gigawatts (GW). 
    One of the sources said Auren Energia sees value in the
CEEE-G energy that may be sold on the spot market. Auren owns
one of the largest power trading companies in Brazil. 
    EDF had been interested in the generator since the regional
Rio Grande do Sul government first tried to privatize the
company, last March. 
    But the company dropped out of the process earlier this
week, one of the sources added. Although the reason was not
clear, the ongoing EDF nationalization by the French government
makes it difficult to approve new large investments abroad, the
source added.
    Auren Energia, EDF and CSN did not immediately comment.

 (Reporting by Leticia Fucuchima and Tatiana Bautzer
Editing by Marguerita Choy)
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