Sale of Celg's controlling stake shakes up the electricity sector.
The publication of the privatization notice for Celg Distribuição (Celg D) is stirring up the Brazilian electricity sector; newspapers report that companies are preparing to participate in the landmark auction; the minimum value of the Goiás-based energy company is R$ 2,8 billion, and the Goiás government sees privatization as an alternative for the company to receive the necessary investments; the Ministry of Mines and Energy has already published the sale notice.
Goiás 247 - The publication of the privatization notice for Celg Distribuição (Celg D) is stirring up the Brazilian electricity sector. Even amidst the economic crisis the country is experiencing, potential buyers interested in acquiring shares in the company are already analyzing how to participate in the bidding process, according to reports published in recent days by the Brazilian press. The auction is attracting interest from potential buyers for two reasons: the pent-up market demand that Celg D has to meet and the renewal of its concession, a result of Governor Marconi Perillo's efforts with the Ministry of Mines and Energy.
The Government of Goiás is actively participating in defining the rules and conducting the auction. In the state, the negotiations are being led by the Secretary of Finance, Ana Carla Abrão. The auction had its final criteria defined on Friday by the National Development Bank and the Ministry of Mines and Energy, responsible for the process. The deadline for submitting documents is August 16th. The scheduled date for the public session with the opening of bids is August 19th. The minimum price is R$ 2,8 billion.
A report in this weekend's edition of the Valor Econômico newspaper mentions an executive from an electricity company potentially interested in the deal, without identifying him: "We cannot ignore this business." The president of the Acende Brasil Institute, Cláudio Sales, in turn, states that the buyer could spread their investment over a longer period, making the asset more "economically palatable."
The text, published in the Valor newspaper's Business section, also states that Celg D is geographically located in a promising region, mainly due to agribusiness, with a relatively large consumer market and a growth trajectory, while the national average is declining. "The distributor has the potential for economies of scale, at a crucial moment for the consolidation of the sector," it says.
Production
The state Secretary of Finance, Ana Carla Abrão, believes that privatization is crucial for the company to provide better services to the population at more competitive prices. Considered one of the largest energy distributors in Brazil, Celg D is a company controlled by Eletrobras, which holds 50,93% of its share capital, and by the Government of Goiás, which, through CelgPar, owns 49% of the company's capital.
The privatization process, which has been closely monitored by Governor Marconi Perillo, will be carried out in two stages, the first being the sale of shares representing the controlling stake in the company and the second being the offering of shares to employees and retirees.
Ana Carla points out that Celg operates within a context where the provision of electricity services has the potential for growth and expansion in the state and the country, with the recovery of economic activity. According to the secretary, Celg is currently unable to keep up with the demand generated by the development of Goiás.
On the one hand, Celg will receive more investments and better services for the population, while on the other hand, the proceeds from the sale will be entirely reinvested in infrastructure projects. "It's a win-win situation. The political and economic climate is more favorable, and the market is ripe for the sale," he states.