October 19, 2016 / 9:58 AM / in 2 years

Brazil's Cemig, FIP Coliseu to raise up to $405 mln with Taesa stake sale

SAO PAULO, Oct 19 (Reuters) - Cia Energética de Minas Gerais SA, Brazil’s no. 3 power utility, and an investiment vehicle will raise up to 1.29 billion reais ($405 million) with the sale of a stake in Transmissora Aliança de Energia Elétrica SA, according to a securities filing.

Cemig said it had set a price of 19.65 reais for the 65.7 million units of Taesa, a blend of common and preferred shares, a 4 percent discount to Tuesday’s closing price of 20.51 reais.

Reuters had reported on Aug. 3 and Sept. 1 that Cemig planned sell a stake in power transmission utility Taesa to raise cash.

Under preliminary terms, Cemig planned to sell 25 million units of Taesa, with FIP Coliseu exiting up to 40.7 million units.

Taesa units have fallen nearly 12 percent since September, when speculation of the offering arose, and are now trading at their lowest in three months.

The restricted-efforts offering with will take place on Oct. 24, the filing added.

Public offerings with restricted efforts differ from standard equity offerings in that a company does not have to request registration of the plan with securities industry watchdog CVM, only qualified investors can participate, and the deals cannot be marketed through road shows or the media.

Cemig and partner FIP Coliseu hired the investment banking units of Bank of America Corp, Banco do Brasil SA, Credit Suisse Group AG, Banco Modal SA and Banco Santander Brasil SA to manage the deal.

$1 = 3.19 reais Reporting by Bruno Federowski; Editing by Louise Heavens

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