(Adds CPFL comment, updates dateline)
SAO PAULO, April 26 (Reuters) - Italy's Enel SpA is in talks to sell its Brazilian power distributor company Celg-D in a deal that may total more than $2 billion, four sources with knowledge of the matter said.
Celg-D, which distributes power to 3.27 million customers in Brazil's center-west state of Goias, is valued at around 10 billion reais including debt and has an equity value of around 5 billion reais, the sources told Reuters.
Firms interested in buying Celg-D include Brazilian rivals CPFL Energia, controlled by State Grid Corporation of China, Neoenergia, controlled by Spain's Iberdrola and EDP Energias do Brasil, in which Portugal's EDP is the largest shareholder.
Brazilian rivals Energisa and Equatorial Energia are also looking, the sources added.
Enel and Energisa declined to comment, while EDP Energias do Brasil and Equatorial did not respond to requests for comment.
CPFL said it is constantly analyzing opportunities in the power sector, while Neoenergia said it is not interested.
Itau Unibanco Holding SA's investment banking unit is advising Enel whose shares rose 1.9% on Monday after the Reuters report of the sale process was published.
Enel paid 2.1 billion reais to buy Celg-D from Brazil's Goias state and federal power holding company Centrais Eletricas Brasileiras, known as Eletrobras in a privatization in 2016. In 2020, Goias Governor Ronaldo Caiado criticized Enel for the quality of Celg-D's service.
Celg-D is among the worst Brazilian power distributors in quality of service, rankings published by Brazilian power regulator Aneel show. Last year, it was the third worst of 29.
Enel owns power distributors in Brazils Sao Paulo, Rio de Janeiro, Ceara and Goias states, with 18 million customers.
EDP Brasil could achieve significant synergies if it acquired Celg-D after last year buying transmission company Celg-T for 2 billion reais in a privatization auction.
CEO João Marques da Cruz told investors last week that EDP Brasil would consider bids for power distributors on sale. ($1 = 4.6690 reais) (Reporting by Tatiana Bautzer and Leticia Fucuchima in Sao Paulo; Editing by Chizu Nomiyama, Susan Fenton and Alexander Smith)
