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Brazil utilities sale draws big bids

BRASILIA, April 18, 2018 – Brazil’s government is planning to obtain congressional approval for the USD 3.5-billion privatisation of state utility Eletrobras by the end of May, international media reported on Tuesday.

 

The news came amid heated competition for power distribution company Eletropaulo, which serves the country’s most populous state. Enel on Tuesday offered up to EUR 1.1 billion to buy it, shortly after Iberdrola made a higher bid of USD 1.7 billion, Bloomberg reported. A somewhat lower bid by local competitor Energisa was rejected by Eletropaulo’s board.

“It has turned into an auction,” Alexandre Montes, an expert at financial research firm Lopes Filho, told the agency. “It’s a coveted asset because it is one of the best power assets in Brazil, located in a huge city, with a population that has a high purchasing power.”

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