December 28, 2018 / 3:31 PM / 8 months ago

Brazil's Itaú to invest $155 mln in power company

SAO PAULO, Dec 28 (Reuters) - Brazil’s largest private lender, Itaú Unibanco Holding SA, will invest 600 million reais ($154.61 million) in a power company controlled by Energisa SA, according to a securities filing on Friday.

Itaú will hold a 12.3 percent stake in Energisa Participações, an entity of the Energisa group, after proceeds are used in a capital increase, the power company’s filing said.

Energisa said the capital injection aims at improving its cash position as well as deleveraging it after two recent acquisitions. In August, Energisa bought two power distributors previously owned by state-controlled power company Centrais Elétricas Brasileiras SA.

Under the terms of the agreement, Energisa has an option to buy Itaú’s stake in Energisa Participações.

Itaú did not immediately comment on the transaction. ($1 = 3.8808 reais) (Reporting by Carolina Mandl; editing by Jonathan Oatis)

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