Equatorial Plans Celpa Capitalization

Brazil’s Equatorial Energia is planning a BRL1bn ($493m)equity follow-on, it says, in part to raise funds for newly-purchased Centrais Eletricas do Para (Celpa). It does not indicate the number of shares or timeline for the sale, to include primary shares and secondary shares sold by a fund linked to Equatorial controller Vinci Partners. Proceeds are for funding Celpa, possible acquisitions in distribution or generation assets, and for working capital. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing. Equatorial agreed last month to buy 61.37% of heavily-indebted Celpa from Grupo Rede for BRL1.00, and is considering teaming up with CPFL Energia to buy all of Rede.