Cemig Targets Control of Light; Hits Road

Brazilian power producer Cemig has confirmed its interest in increasing its stake in the consortium that has a controlling stake in Light. The Rio Minas Energia (RME) group, composed of 4 members including Cemig, Equatorial, owned by Pactual, Andrade Gutierrez and a Banif-held fund, controls 52% of the shares of Light, a leading power producer in the Rio area. The BNDES owns the rest. Cemig says it is in talks to acquire the stake belonging to Equatorial, and it has not denied reports it is also interested in Andrade Gutierrez’s stake. If it succeeds in acquiring the two stakes, its ownership of RME would rise to 75%, which would give it an effective 39% stake in Light. Bradesco is heard advising Cemig, according to bankers away from the process. Separately, Cemig is on a non-deal roadshow with Merrill Lynch to discuss its business with investors. The European portion of the roadshow ended Monday in Edinburgh, and today moves to New York, with stops in Chicago, Denver and San Francisco through October 14.