August 8, 2016 / 12:32 PM / 2 years ago

Brazil's Cemig to sell assets, CEO says -newspaper

SAO PAULO, Aug 8 (Reuters) - Cia Energética de Minas Gerais SA, Brazil’s No. 3 power utility, plans to conclude the sale of stakes in various companies, such as the Gasmig gas unit, by the end of 2017, Chief Executive Officer Mauro Borges said in an interview with newspaper Valor Economico.

Borges said Cemig was considering stake sales in Gasmig, hydroelectric dams Belo Monte and Santo Antonio, transmission company Taesa and Rio de Janeiro-based distribution company Light. In some cases, the company may prefer to attract investors to inject cash into the companies instead of selling its stake, Borges said in the interview published on Monday.

Cemig will use most of the proceeds to repay net debt, which in March stood at 11 billion reais ($3.45 billion), or 4.4 times its earnings before interest, depreciation and amortization.

Borges said the board would decide on the Belo Horizonte-based company’s portfolio review by the end of the month.

Cemig, which has stakes in 232 different companies, did not immediately respond to a request for comment.

$1 = 3.1887 Brazilian reais Reporting by Tatiana Bautzer; Editing by Lisa Von Ahn

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