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(Updates with closing prices in second and penultimate paragraphs.)
Oct. 26 (Bloomberg) -- Cia. Energetica de Minas Gerais, the state-controlled electricity utility known as Cemig, gained the most in almost two years after saying it won’t cut dividends following the acquisition of a stake in Norte Energia SA.
Shares gained 4.7 percent to 28 reais at the close of trading in Sao Paulo, the most since November 2009. The stock was the best performer on the benchmark Bovespa index, which climbed 1.5 percent.
Cemig and its unit Light SA agreed to pay 118.7 million reais ($67 million) for a 9.77 percent stake in Norte Energia, according to a regulatory filing. The acquisition won’t affect the companies’ dividends, Cemig said in a statement.
“The pledge to keep paying the same dividends as before was positive,” Rosangela Ribeiro, an analyst at SLW Corretora brokerage, said in a telephone interview from Sao Paulo. “Investors were worried about this issue after the deal was announced.”
The companies may pay dividends equivalent to 50 percent of their net income this year, according to SLW’s estimates. Light advanced 1.6 percent to 26.02 reais in Sao Paulo today.
Norte Energia holds the concession for the Belo Monte dam project in Brazil’s Amazon. Construction of the dam will cost 25.8 billion reais and the plant should start operating in 2015, Cemig said today.
--Editors: Brendan Walsh, Glenn J. Kalinoski
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