Cemig Planning To Increase Stake In Power Distributor Light SA

Cemig, Brazil’s state-controlled power company, is planning to raise its stake in Rio de Janeiro-based power distributor Light SA, according to a report from Reuters.

The report, citing remarks made by an executive during a teleconference, said Cemig already controls Light with a 30% stake and will buy another 2.8% percent held by Brazilian investment bank Grupo BTG Pactual.

The report said the company has the cash to buy the bank’s stake but the value of the deal was not disclosed. Other financial partners with Cemig including Banco do Brasil, BV Financeira and Banco Santander Brasil (BSBR) may also sell their stakes in Light by next year, the report said, and Cemig will look for new investors to replace the current partners.

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