Governor Márcio França, of the PSB party, orders the privatization of CESP.
The São Paulo state government published on Saturday the bidding notice for the sale of controlling shares in Companhia Energética de São Paulo (Cesp) on October 2nd; with the initiative of Governor Márcio França, of the PSB party, 40% of the company's shares will pass into the hands of investors; the price has been lowered compared to the three previous privatization attempts, and multiple advantages are offered to those interested in acquiring the public asset.
247 - The government of the state of São Paulo published this Saturday (7) the notice for the sale of the controlling stake in Companhia Energética de São Paulo (Cesp). Cesp is a publicly traded company, a public service concessionaire for electricity generation in the state. With the initiative of Governor Márcio França, of the PSB, 40% of the shares of the energy generator will pass into the hands of capitalists, with the complete privatization of the company. The stipulated price was lowered compared to the three previous privatization attempts and even more advantages are offered to those interested in acquiring the public asset. The devaluation of the real against the dollar made the price -R$ 14,30 per share- a bargain for international groups.
After three failed attempts, the São Paulo state government has scheduled the privatization auction for October 2nd, in a single lot. The minimum price of R$ 14,30 is lower than the R$ 16,80 stipulated in the last attempt to sell, in August of last year – which values the company at approximately R$ 4,7 billion, according to the bidding document. The recent devaluation of the real against the dollar has further reduced the company's value for foreign groups. In August of last year, the dollar was quoted at around R$ 3,15, compared to the current level of R$ 3,90.
According to experts in the electricity sector, in addition to the lower price, the conditions for the sale are also more attractive to investors this time because they foresee that the Porto Primavera power plant, the group's main asset, will have a new concession contract valid until 2048. Last year, the government tried to sell Cesp only with the current contract for the hydroelectric plant, which runs until 2028. The plant has the longest dam in Brazil, with 1.540 megawatts (MW) of installed capacity.
The company operates a total of three hydroelectric plants: Jaguari, Paraibuna, and Porto Primavera. Together, they have an installed capacity of 1.654,6 MW and a guaranteed energy output of 1.056,6 MW. In total, 18 generating units are involved in the operation.
The company was established on December 5, 1966, as Centrais Elétricas de São Paulo, from the merger of 11 electric power companies.