SAO PAULO, June 29 (Reuters) - Cia Energética de Minas Gerais SA, Brazil’s No. 3 electric utility, wants to auction off its controlling stake in power generation and distribution company Light SA, an executive told the newspaper Valor Econômico.
In an interview published in the Thursday edition of Valor, Chairman Nelson Hubner said Cemig, as the company is known, was expecting to hold a public auction on the São Paulo Stock Exchange by mid-October.
Media representatives for Cemig, which holds a 52 percent stake in Light, did not immediately respond to requests for comment.
Last week, Cemig’s board cleared plans to exit the Rio de Janeiro-based utility, pushing ahead with efforts to cut debt and raise cash. Shares of both companies rallied after the announcement.
Cemig’s debt has tripled since 2012, following a series of acquisitions that failed to yield expected returns, due in part to government-led renegotiation of power contracts.
Light’s common shares have jumped 30 percent so far this year, outperforming a 5.4 percent rise for an index tracking power utilities listed on the São Paulo Stock Exchange. Cemig’s preferred shares are up 10.2 percent in 2017. (Writing by Bruno Federowski; Editing by Lisa Von Ahn)