Taesa Advances FO

Brazil’s Transmissora Alianca de Energia Eletrica (Taesa) has initiated the regulatory process for an equity follow-on, it says. Controller Cemig had planned to improve Taesa’s float and raise funds funds through the sale, which could reach BRL2bn ($1bn), since purchasing the assets from Italy’s Terna in 2009. The transmission company does not give the size or the timing of the all-primary share deal, to be managed by Bank of America Merrill Lynch, BTG Pactual, Banco do Brasil, Goldman Sachs and Santander. The proceeds will be used for investments and expansion. Taesa will offer its units in the sale, consisting of one common and two preferred shares. Taesa’s units closed at BRL65.50 Tuesday.