SAO PAULO, Dec 28 (Reuters) - The Brazilian state of Minas Gerais is considering reducing its controlling stake in power company Cemig by selling shares in the firm, a move that would in practice turn it into a corporation, newspaper Valor Economico quoted Governor Romeu Zema as saying.

The strategy would be similar to that used by Brazil's federal government to privatize Eletrobras earlier this year and to the bid launched by the state of Parana to dilute its stake in utility Copel.

Zema, a member of the market-friendly "New Party" who failed to privatize Cemig in his first term after facing hurdles in Minas Gerais' state legislature, was re-elected in a landslide win in October.

"Cemig might be the case of a 'corporation process'," Zema told Valor in an interview about the company, formally known as Companhia Energetica de Minas Gerais.

"The state wouldn't sell (its full stake), the company would receive new investments and I'd be satisfied only with the state not having the final say, protecting the firm from mismanagement while still getting paid dividends".

He also said he aims to push for a broader privatization agenda in 2023 that would include sanitation firm Copasa and state development company Codemig, according to Valor.

Cemig and the Minas Gerais state press office did not immediately respond to requests for comment. (Reporting by Gabriel Araujo)