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Canada's CPPIB, Brazil's Votorantim take over power firm for $458 mln

Published 2018-10-19, 02:20 p/m
© Reuters.  Canada's CPPIB, Brazil's Votorantim take over power firm for $458 mln
CESP6
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SAO PAULO, Oct 19 (Reuters) - A consortium of Canadian pension fund CPPIB CPPIBC.UL and Brazil's Votorantim Energia won a privatization auction on Friday to buy a controlling stake in power company Cesp CESP6.SA from the government of Sao Paulo state.

The consortium, called Sao Paulo Energia, will pay 14.6 reais per Cesp share, a 2.09 percent premium over the minimum sale price at the auction. Considering Sao Paulo's government stake of 40.6 percent, the consortium will pay a total of 1.7 billion reais ($458.25 million).

Shares of Cesp, or Companhia Energética de Sao Paulo SA, rose more than 12 percent after the auction to 17.07 reais each.

The consortium was the only bidder at the auction, which ends a privatization process that started last year and faced postponements due to legal disputes.

CPPIB and Votorantim Energia already have a joint venture in Brazil that plans invest in renewable power sources. = 3.7098 reais) (Reporting José Roberto Gomes Writing by Marcelo Teixeira; Editing by Bernadette Baum and Susan Thomas)

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