Brazil water utility Sanepar may sell $463 million in stock -Valor
RIO DE JANEIRO, Sept 27 (Reuters) - Brazilian state-controlled water and sewage utility Sanepar is preparing a plan to sell about 1.5 billion reais ($463 million) of new and existing stock, the Valor Economico newspaper reported on Tuesday, citing unnamed banking sources.
The sale could be the biggest stock offering in Brazil this year, the paper said.
The offering would provide capital for investment and allow the controlling shareholder, the government of Brazil's Parana state, to raise cash, Valor said.
A bill passed last week by the Parana legislature allows the government to sell shares in state-owned and -controlled companies, but requires the state to maintain at least 60 percent of the common stock in Cia de Saneamento do Parana, as Sanepar is formally known.
The bill, aimed at helping the state raise revenue in the midst of budget difficulties, still requires approval from Parana's governor.
The state owns 75 percent of Sanepar's voting, common shares. When non-voting preferred stock is included, it owns 51.4 percent of the company's total shares.
On Monday, Sanepar preferred shares, the company's most-traded class of stock, closed at 8.30 reais. That gave the company a market value of 3.34 billion reais, Valor said.
($1 = 3.2416 Brazilian reais) (Reporting by Jeb Blount; Editing by Lisa Von Ahn)
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