Light Snuffs Out Secondary Equity

Brazilian power utility company Light and shareholders are heard to have pulled a secondary sale of shares that might have raised close to BRL1bn. The deal was scheduled for later this week via Citi, Itau BBA and Unibanco. Selling shareholders BNDESPar, the investment arm of Brazil’s development bank that holds 33.7%, and French power company EDF which owns 6.6%, were looking to reduce their respective stakes by 50% and 100%. They opted to step away from the market following a 10.8% drop in the share price between May 30, the filing date, and July 11, says a banker close to the process. The Ibovespa has fallen 17.1% in the same period. Since a 2008 high of BRL28.19 on May 5, Light’s stock has dropped 20.3%, according to Economatica, which quotes Monday’s close at BRL23.30. Light has not made its decision official or set a potential new date for the deal. Light embarked on a marketing process for the deal at the end of June. The BRL1bn raise was initially estimated by bankers involved in the trade.