Brazilian utility might sell six distribution units

Brazil, Sao Paolo: Centrais Eletricas Brasileiras SA (Eletrobras), Brazilian state-owned power holding company which could be privatized next year, will have to sell six power distribution units at a loss, Reuters cites a government source.

According to the source, the competent ministry has received a recommendation by electricity industry watchdog Aneel to sell six distribution firms to whichever bidder agrees to raise rates the least. This model implies that Eletrobras will not get new cash from these assets.

Equatorial Energia SA, Neoenergia SA and Italy’s Enel SpA are mentioned as interested bidders as well as investment firms and utility Energisa SA.

Brazilian government announced last month that it intends to sell control of Eletrobras by June 2018, with the distribution units expected to be sold separately later this year, reports Reuters.

Source: Reuters