SAO PAULO--Iberdrola SA (IBDRY, IBE.MC), Banco do Brasil SA
(BDORY, BBAS3.BR) and pension fund Previ, the controlling
shareholders of Brazil utility Neoenergia (GNAN3B.SM), said Tuesday
they had no plans to "significantly" alter their stakes in the
company.
Iberdrola had reportedly been seeking buyers for all or part of
its 39% stake in the Brazilian electricity generation, transmission
and distribution company. According to a report earlier this month,
rules governing pension funds would also force Previ, which has a
49% stake in Neoenergia, to reduce its holding to 25%. A separate
report said Previ wanted to buy out its Spanish partner to head off
a possible sale to Chinese rivals.
But the controlling shareholders said in a regulatory filing
Tuesday that, after a period of reviewing possible changes in the
controlling bloc, the existing shareholders "decided to maintain
the current shareholder structure with the intent of assuring the
maintenance of the partnership on a solid and economically
favorable base favorable to all involved."
However, the companies said they may modify the shareholding
structure to allow Iberdrola to adapt to International Financial
Reporting Standards accounting rules, but didn't clarify what those
changes might entail.
Brazil's power industry has seen a number of ownership changes
in recent months, as European companies, often tied to their
respective governments, sold stakes to bolster their balance
sheets. EDP-Energias de Portugal SA (EDPFY, EDP.LB), for example,
sold a controlling stake to China's Three Gorges Corp. Meanwhile,
financing difficulties at some distributors have led to
consolidation in that industry, and growing demand for new
generation and transmission sources has led to mergers and
acquisitions in the sector.
Write to Paulo Winterstein at
paulo.winterstein@dowjones.com.
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