Bloomberg News

Rede Energia Advances After Closing Sale of Bankrupt Celpa Unit

November 05, 2012

Rede Energia SA (REDE4), Brazil’s second-best performing electric utility in 2012, jumped after concluding the sale of its bankrupt Centrais Eletricas do Para SA subsidiary, known as Celpa, to Equatorial Energia SA. (EQTL3)

Rede rose 10 percent to 4.86 reais at 12:32 p.m. in Sao Paulo. Equatorial gained 1.3 percent to 19 reais while the benchmark Bovespa index fell 0.8 percent.

Equatorial paid 1 real (49 cents) for 39.18 million Celpa shares, which represent 65.18 percent of the company’s voting capital, Rede said in a statement after the close of trading Nov. 1. Celpa filed for bankruptcy protection Feb. 28 after a four-year freeze on rates pushed up debt to 2.3 billion reais.

Equatorial, an electricity holding company owned by Brazilian private-equity firm Vinci Partners Investimentos Ltda., agreed in June to take control of the bankrupt utility, based in Belem, as it seeks to expand in the Amazon region, where Celpa is the largest power distributor.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus