The share sale that’s set to privatize Brazil’s Companhia Paranaense de Energia has drawn early interest from investors including GQG Partners LLC and Zimmer Partners, according to people familiar with the matter.
(Bloomberg) — The share sale that’s set to privatize Brazil’s Companhia Paranaense de Energia has drawn early interest from investors including GQG Partners LLC and Zimmer Partners, according to people familiar with the matter.
The two funds, along with local asset managers SPX Capital and Radar, are interested in scooping up a total of 2.5 billion reais in shares of Copel, as the utility is known, said the people, asking not to be named discussing the confidential process. The interest is preliminary and the funds may still end up not participating in the sale depending on conditions, they added.
Pricing is expected Aug. 8 and the transaction could raise as much as 5.3 billion reais ($1.1 billion) based on current prices and assuming that the over-allotment is fully sold. A key step for the sale to occur was cleared on Wednesday as Brazil’s audit court approved a fee for the concession renewal on three of Copel’s hydro plants.
Copel, GQG, SPX and Radar declined to comment. Zimmer didn’t reply to requests seeking comment.
Banks running the transaction are Banco BTG Pactual SA, Banco Itau BBA SA, Banco Bradesco BBI SA, Morgan Stanley and UBS BB Investment Bank.
–With assistance from Zijia Song and Hema Parmar.
(Updates with decision from Brazil’s audit court in third paragraph.)
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