(Bloomberg) -- An offering of Brazil’s power company Light SA late on Tuesday raised about 2.7 billion reais ($504 million).
The Rio de Janeiro-based firm, which counts billionaire and co-founder at 3G Capital Partners Ltd. Carlos Alberto Sicupira among its backers, sold 68.6 million worth of new shares, according to a filing. As part of the transaction, Light shareholder Cia Energetica de Minas Gerais, known as Cemig, sold its entire stake of 68.6 million shares in the company.
Light shares were priced at 20 reais each, or a 7.4% discount to Tuesday’s close, the companies said in the filings released early on Wednesday. Bloomberg News earlier reported on the pricing.
Key Insights
- Cemig, a utility controlled by the Minas Gerais government, had a 22.6% stake in Light, which has lured investors including Sicupira, asset manager Atmos Capital and Ronaldo Cezar Coelho’s Samambaia fund.
- In November, Sicupira said he indirectly held 30.6 million voting shares, accounting for about 10% of Light’s capital stock.
- Light is going through a turnaround process and has said it will use the offering’s proceeds to cut debt and bolster its cash position.
- In October, the company chose a new CEO, Raimundo Nonato de Castro, to replace Ana Marta Horta Veloso.
- Light shares are down 11% in the past year, compared to a 6% decline for Cemig and a 2% advance for the benchmark Ibovespa index.
Digging Deeeper
- Itau BBA was the lead underwriter, while BTG Pactual, Santander Brasil, XP and Citi also ran the transaction.
- Cemig’s divestment is positive for Light as it eliminates any potential risk of interference on the firm’s management, while for Cemig it might be a push to the sale of non-core assets including Belo Monte and Santo Antonio, Safra analyst Daniel Travitzky wrote in a report dated Jan. 7.
Get More
- Asset Manager Atmos Boosts Stake in Brazil Utility Light to 5.6%
- Brazil’s Utility Light Extends Rally on CEO Change; Volume Jumps
- Brazil’s Light Says Raimundo Nonato de Castro Elected CEO
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
