State Grid to conclude Brazil's CPFL deal Friday -source
SAO PAULO Aug 31 (Reuters) - State Grid Corp of China plans to sign final terms of the purchase of a 23.6 percent stake in Brazilian power holding company CPFL Energia SA from conglomerate Camargo Correa SA as early as Friday, said a person directly involved in the matter.
Due diligence proceedings for the purchase of the stake had been finalized this week, said the source, adding that all the preconditions imposed by the Chinese giant had been met.
On July 1, State Grid, the world's largest utility, agreed to pay 5.9 billion reais ($1.8 billion) for Camargo Correa's stake in CPFL, part of an effort to expand in Latin America's largest economy.
Under terms of a shareholder accord, State Grid had to extend the same offer to other shareholders, including Previ Caixa de Previdência dos Funcionários do Banco do Brasil and an investment vehicle called Bonaire - which has four other state-run pension funds.
Reuters reported on July 19 that Previ would be inclined to accept the offer once State Grid extends it. A decision by Previ to accept State Grid's proposal could lure other funds into the deal and trigger a buyout of minority shareholders.
If the buyout is extended to all shareholders, State Grid's purchase of CPFL could become Brazil's biggest takeover this year, reaching up to 29 billion reais.
The investment-banking units of Banco Santander Brasil SA and Bank of America Corp advised State Grid on the deal. State Grid and Bank of America did not immediately comment. Santander and Camargo Correa declined to comment.
($1 = 3.2265 Brazilian reais) (Reporting by Tatiana Bautzer; Editing by Guillermo Parra-Bernal, Bernard Orr)
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