July 2, 2019 / 12:24 PM / a year ago

Brazil power company Light approves 2 billion-real share offering

RIO DE JANEIRO, July 2 (Reuters) - Brazilian power company Light SA has approved a primary and secondary share offering valued at over 2 billion reais ($521 million), it said in a securities filing late on Monday, confirming a Reuters report earlier in the day.

According to the filing, Light has approved a primary offering of 100 million new shares and 11.1 million shares owned by power company Cemig. Given Light's Monday closing price on the Sao Paulo stock exchange of 18.85 reais per share, the total value of the offering comes to 2.09 billion reais.

Reuters reported on Monday afternoon that Light was preparing the offering to reduce debt. The company ended March with a net debt of 8.2 billion reais, which is equivalent to 3.7 times its earnings before interest, taxes, depreciation and amortization (EBITDA).

Light primarily operates in the electricity distribution sector in the Rio de Janeiro metropolitan area. Cia Energetica de Minas Gerais SA, as Cemig is formally known, currently has a 49.99% stake in the firm. The offer will be led by Banco Itau BBA SA, with Citibank, Banco Santander Brasil SA , Banco Bradesco SA, BB Investimentos, XP, and Banco BTG Pactual SA also coordinating the offering.

The new shares are scheduled to begin trading on July 15.

($1 = 3.84 reais)

Reporting by Gram Slattery Editing by Chizu Nomiyama

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