Brasiliana Sells Assets to TIM Celular

In a deal that had been expected by the markets, Brasiliana Energia has sold its stake in Eletropaulo Telecomunicacoes (AES EP Telecom) and AES Communications Rio de Janeiro (AES Com Rio) to TIM Celular for a total of BRL1.6bn ($1.01bn). AES EP Telecom is being sold for BRL1.2bn and AES Com Rio is being sold for BRL473m. Brazil-based equity analysts say they expect Brasiliana to pay out proceeds in the form of a dividend to minority shareholders. However, management says any such payout will have to await a tariff review, expected to occur in December of this year. The market had already largely priced in the sale, although shares sold down slightly at the prospect of the dividend payout being delayed until the end of the year. Brazilian development bank BNDES said earlier this week it intends to sell the 49.9% it holds in Brasiliana.