Cia Energética de Minas Gerais SA has hired at least three investment banks to prepare the sale of small hydropower plants and a gas distribution unit, according to three sources with direct knowledge of the plans, part of efforts by Brazil’s second largest power distribution firm to cut its debt.
Cemig (CMIG4.SA), which is controlled by the Brazilian state of Minas Gerais, has hired Itaú BBA SA to prepare the sale of the gas unit, Cia de Gás de Minas Gerais SA, known as Gasmig, said two of the sources, who asked for anonymity since the plan is private. Cemig expects to raise 1.7 billion reais ($517 million) from the sale of the Gasmig unit, the sources said.
According to the three sources, Cemig also gave a mandate to Banco do Brasil SA (BBAS3.SA) and Grupo BTG Pactual SA (BBTG11.SA) to organize the sale of some of the power utility’s 24 small hydropower plants, known in Brazil as PCHs, located in the state of Minas Gerais.
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