SAO PAULO, April 28 (Reuters) - Brazilian power utility
Cemig is planning an initial public offering of its gas
distribution unit and a wave of divestments, executives said on
Wednesday, and the company's shares rose over 4% after the news.
During an online investors' event, executives said they
planned to sell off some 9 billion reais ($1.66 billion) in
assets through 2025, including the company's stake in the
massive Belo Monte and Santo Antonio hydroelectric dams.
As part of that divestment drive, the company, formally Cia
Energetica de Minas Gerais SA, also plans to sell its
stake in Alianca Energia, a joint power generation venture with
Brazilian mining company Vale SA, the executives
Cemig is the public power company of Minas Gerais, Brazil's
second most populous state.
Sao Paulo-listed shares in the company were up 4.4% in
mid-day trade, the second biggest gainer on Brazil's benchmark
Bovespa equities index.
Earlier in the event, Minas Gerais Governor Romeu Zema
re-affirmed his stated intentions to privatize the company,
saying he wanted it completed by the end of his term in 2022.
"I would like the company to be privatized during my
tenure," Zema said. "Perhaps not to outright sell it, but for it
to receive a (private) capital injection and therefore dilute
the state, which has always interfered inappropriately, so it
loses its controlling stake and stops hurting Cemig."
(Reporting by Luciano Costa; Writing by Gram Slattery; Editing
by Louise Heavens and David Gregorio)