Engie Brasil approves share offering tied to planned Jirau stake purchase (updated)
UPDATE 1-Engie Brasil approves share offering tied to planned Jirau stake purchase Updates with further details from the filing and context about the power plant
SAO PAULO, June 10 (Reuters) - Engie Brasil EGIE3.SA said on Wednesday its board approved a public offering of new shares as part of a plan to acquire a stake in the Jirau hydroelectric power plant, according to a securities filing.
The company said its controlling shareholder, indirectly owned by France's Engie ENGIE.PA, may take part in the offering by transferring a 40% stake in Jirau to the Brazilian unit.
A consultancy hired by Engie Brasil valued the stake at 5.74 billion reais ($1.1 billion).
Other terms of the share offering were not disclosed. The transaction still requires shareholder approval.
The company said the deal would allow it to add Jirau to its generation portfolio while also raising funds to meet financial commitments and support existing and new projects.
Itau BBA and Santander Brasil will act as bookrunners for the offering.
Jirau, on the Madeira River in Brazil's Amazon region, has installed capacity of 3,750 megawatts. Its shareholders include Engie, Axia Energia AXIA5.SA and Mitsui & Co 8031.T.
($1 = 5.1832 reais)
(Reporting by Andre Romani; Editing by Kylie Madry)
((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))
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