US power company AES (NYSE: AES) is exploring plans with partners to acquire Brazilian federal development bank BNDES's 49.99% stake in power holding company Brasiliana.
Related content
Companies / Entities
Eletropaulo Metropolitana Eletricidade de São Paulo S.A.
Banco Nacional de Desenvolvimento Econômico e Social
Keywords
Trading/Auctions
Mergers & Acquisitions
Privatization/Concession
Government/Regulations
Distribution
Research Reports
BNDES likely will sell the asset in June, Andres Gluski, AES executive VP and COO, told a webcast, without naming AES's potential partners in the deal.
"We have the first right of refusal, we're keeping our options open and have a local line of credit in place," Gluski said.
AES holds the remaining stake in Brasiliana, which controls power companies AES Eletropaulo, AES Tietê, AES Sul and AES Uruguaiana.
Other power companies such as Light, Tractebel Energia, Cemig (NYSE: CIG) and CPFL Energia (NYSE: CPL) have expressed interest in bidding for Brasiliana if AES does not claim the stake.
Companies such as power holding EDB are shying away from the opportunity. The Brasiliana acquisition "would demand very heavy expenditure, something between US$10bn and US$12bn including tag-along rights to shareholders," EDB finance VP Antônio Sellare told a webcast in November 2007.
