UPDATE 2-Brazil's Cemig to sell stake in power transmission company Taesa

miércoles 3 de agosto de 2016 21:31 GYT

(Adds confirmation from company on sale)

SAO PAULO Aug 3 (Reuters) - Brazilian utility Companhia Energética de Minas Gerais SA plans to sell part of its stake in power transmission company Taesa, the company said in a securities filing on Wednesday.

Cemig said it will sell 22.27 million TAESA units that are share deposit certificates for two preferred shares and one common share issued in the transmission company.

Cemig, as the utility is known, jointly controls Taesa with Brazilian investment fund Coliseu. Cemig said the units are not part of the controlling interest block.

Reuters reported earlier on Wednesday that the utility, which is looking to sell assets to cut debt, will put out for sale a 6.5 percent stake in Taesa. It currently owns 43 percent of the transmission company, formally Transmissora Aliança de Energia Elétrica SA.

Cemig recently unlocked the 6.5 percent stake from the controlling interest block, a necessary step to allow it to sell the shares.

According to a source with knowledge of the sale, the Belo Horizonte-based company plans to raise about 500 million reais ($150 million) in the deal.

"Cemig may sell this stake in one to two months. Investors like Taesa," said the source, who asked for anonymity because the person is not authorized to speak publicly on the matter.

The source added that the company might sell the asset to just one investor or to a small group of investors in a so-called "restricted efforts" share offer.

($1 = 3.242 Brazilian reais) (Reporting by Luciano Costa; Writing by Tatiana Bautzer; Editing by Steve Orlofsky, Bernard Orr)