Equatorial Due to Price Share Sale

Brazil’s Equatorial Energia was expected to emerge with a price for its equity follow-on by this morning, targeting a transaction of more than $600m. Books were heard to be more than covered Thursday. The energy holdco is offering 66m primary shares. This would indicate a BRL1.28bn ($604m) deal, assuming a 15% greenshoe is used, based on Thursday’s BRL16.80 closing price. A 20% hot issue, comprised of secondary shares owned by controller Vinci Partners, is also possible. About 70% of the proceeds are marked for capitalizing Centrais Eletricas do Para (Celpa), of which Equatorial bought control in September, with the remainder for acquisitions and working capital. The sale should take Equatorial’s free float to 52.6%, up from 24.2%. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing the transaction. Equatorial agreed 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.