Mega businesses of US$ 19.9 bi stir up electric sector in the 1st semester

O Estado de S.Paulo - 01/06/2008

Three mega businesses may heat the Brazilian electric sector in the first half of the year and involve figures above R$ 35 billion (US$ 19.9 billion). The control of the Companhia Energética de São Paulo (Cesp), Brasiliana (owner of Eletropaulo and AES Tietê) and the second plant of the Hydroelectric Complex of the Madeira River, Jirau, are under dispute. The businesses may change the face of the sector, which would start counting on new groups in the leadership of the distribution and generation of energy. Whoever purchases Cesp, for example, will take the third largest electricity producer of the Country. In the case of the Brasiliana, it will take Latin America's largest distributor, Eletropaulo. Besides, whoever buys Jirau will have the control of the largest undertaking under construction in the field of generation, with 3.3 thousand megawatts (MW). The market expects the generator of the State of São Paulo to be the first one to be sold, possibly in March. The initial price may be at R$ 45 per stock (US$ 25.6), which would mean R$ 14 billion (US$ 7.9 billion) for the company. But, according to some sources, the price may reach R$ 60 per stock (US$ 34.1), raising the total to more than R$ 20 billion (US$ 11.4 billion). According to market analysts, the appetite of the investors for the energy generating company is huge. There is a long list of potential buyers, such as Iberdrola, Neoenergia, Suez, CPFL, Light, Enel, Energias do Brasil and Pátria Investimentos, besides the international funds. The announcement of the sale of Cesp, made by the government at the end of last month, did not please only the National Bank for Economic and Social Development (BNDES) - which, because of that, will have to delay once again the sale of its participation at the Brasiliana. The institution had already postponed that sale in order not to adversely affect the competition in the auction of the Santo Antonio Hydroelectric Plant, located on the Madeira River. Now, according to some sources, it may also wait for the auction of Jirau, expected for May. The previous expectation was that the sale process of the company should be concluded still this month.

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