July 18, 2016 / 4:11 PM / 2 years ago

Brazil's utility Equatorial places bid for Light control -report

SAO PAULO, July 18 (Reuters) - Brazil’s utility Equatorial Energia SA has placed a bid to acquire electric distribution company Light SA, the blog Brazil Journal reported, without saying how it got the information.

According to the blog, the bid was delivered to state-controlled Companhia Energetica de Minas Gerais SA , Light’s controlling shareholder. In an e-mailed statement to Reuters, Cemig, which has a 26 percent stake in Light, declined to comment. Equatorial did not have an immediate comment.

Ana Veloso, chief executive officer at debt-laden Light, has been Equatorial’s director from 2008 to 2015. The company’s debt is equivalent to 4.2 times its earnings before interest, taxes, depreciation and amortization (EBITDA). The company has 2.4 billion reais ($739 million)in debt maturing over the next two years.

Common shares of Light were up 5.16 percent by mid-morning trading in Sao Paulo on Monday. Speculation about mergers and acquisitions in Brazil’s power sector has boosted Light shares by 50 percent so far this year. Equatorial shares were up 2.6 percent on Monday. ($1 = 3.2473 Brazilian reais) (Reporting by Tatiana Bautzer; Editing by Alan Crosby)

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