Brazil 'confident' of successful Celg-D auction

- Monday, November 28, 2016

Brazil 'confident' of successful Celg-D auction

Brazilian energy minister Fernando Coelho Filho has downplayed fears of lukewarm interest in the privatization of state-run electricity distributor Celg-D.

Coelho Filho said that an auction for the sale of a 100% stake in Celg-D on Wednesday had already drawn a positive response from investors.

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"We have taken a few steps to improve the attractiveness of the auction and we are confident that companies will be interested in buying Celg-D," Coelho Filho told reporters on Monday.

A report by Reuters last week said that only one company had expressed interest in acquiring the subsidiary of state-run power group Eletrobras.

Initially scheduled for August, the auction was postponed amid weak investor interest.

Bidders have been set a minimum price of 1.79bn reais (US$560mn), down from an original value of 2.8bn reais.

Celg-D distributes electricity to 2.61mn customers across 237 municipalities in Goiás state, covering an area of 336,871km2.

Eletrobras hopes to follow the Celg-D auction by offloading six other distribution companies as it turns its focus to generation and transmission.

More information about the auction, in Portuguese, can be seen here.