July 1, 2019 / 8:42 PM / 2 months ago

Exclusive: Brazil's Light readies two billion reais share offering - sources

SAO PAULO (Reuters) - Brazilian power company Light SA (LIGT3.SA) is preparing to launch a 2 billion reais (411.4 million) share offering as soon as Monday, three people with knowledge of the matter said.

The company will sell new and existing shares in the offering, according to the sources, who asked not to be named because the transaction had not been officially announced.

Light shareholder Cia Energetica de Minas Gerais (CMIG4.SA) (Cemig) will also sell part of its 49.99% stake in the company, according to the sources, who pegged the stake for sale at roughly 200 million reais. Cemig, as the company is known, has been pursuing divestments to pay down debts.

Still, Light’s main goal with the offering is to raise money to cut its own debt. The company ended March with net debt of 8.2 billion reais, equivalent to 3.7 times its earnings before interest, taxes, depreciation and amortisation (EBITDA).

Investment banking units of Citigroup Inc (C.N), Itau Unibanco Holding SA (ITUB4.SA), Banco Santander Brasil SA (SANB11.SA) and Banco BTG Pactual SA (BPAC3.SA) are among the advisers managing the offering.

Light had disclosed in May it was considering a follow-on share offering, without providing further details.

Reporting by Carolina Mandl and Luciano Costa in Sao Paulo; Editing by Brad Haynes and Matthew Lewis

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