EDP Brasil rises on sale of hydroelectric power plant

VH Global Energy Infrastructure

31/08/2022 14:55

** Shares in Brazilian power company EDP Energias do Brasil SA
 ENBR3.SA  rise after it agreed to sell a hydroelectric power
plant to London-listed VH Global  GSEO.L  
    ** The firm announced on Tuesday the 1.225 billion-real
($236.08 million) deal for its Mascarenhas plant  urn:newsml:reuters.com:*:nS0N2ZF03Z
    ** Analysts at J.P.Morgan say the deal was positive for EDP
Brasil both on valuation and on prospects for further sales, as
the company still has two other plants under divestment process
    ** "Given the good sale price, the market might get bullish
on the further sales," they say, noting that timing and pricing
for the three divestments were still a doubt up to now
    ** Shares in EDP Brasil are up 5.2% to 23.31 reais in
morning trading, making it the top gainer on Brazil's Bovespa
stock index  .BVSP , which rises 0.7%
    ** EDP Brasil, controlled by Portugal's EDP Energias de
Portugal SA  EDP.LS , is up 23% year-to-date 

($1 = 5.1889 reais)

 (Reporting by Gabriel Araujo; Editing by Steven Grattan)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))