Cemig Shuffles Transmission Assets

Cemig is transferring 6 transmission assets to its Taesa subsidiary, for BRL1.73bn ($856m), it says, consolidating its transmission holdings before a Taesa equity follow-on. Taesa will transfer BRL1.67bn to Cemig and BRL64m to the Cemig Geracao e Transmissao unit, in exchange for the Empresa Catarinense de Transmissao de Energia, Empresa Regional de Transmissao de Energia, Empresa Norte de Transmissao de Energia, Empresa Paranaense de Transmissao de Energia, Empresa Amazonense de Transmissao de Energia and Empresa Brasileira de Transmissao de Energia units. Cemig said last month it is analyzing conditions for the offering of Taesa shares, expected to raise up to BRL2bn. It may hold the sale as soon as June or July, according to market sources, hiring BTG Pactual and Bank of America Merrill Lynch to manage the sale. The follow-on sale would in many ways function as an IPO for the relatively illiquid shares. Cemig bought Taesa, then known as Terna Participacoes, in 2009 from Italy’s Terna, and has indicated it would look to increase the unit’s float. Taesa shares closed at BRL65.50 Friday.