(New throughout, adding information across company divestment plans, stock reactions)
SAO PAULO, April 28 (Reuters) – Brazilian power company Cemig is planning an initial public offering of a gas distribution unit and a wave of divestments, executives said on Wednesday, and the company’s shares rose more than 4% after the news.
During an online investor event, executives said they planned to sell about 9 billion reais ($ 1.66 billion) in assets by 2025, including company stakes in the large hydroelectric dams of Belo Monte and Santo Antonio.
As part of the divestment, the company, officially Cia Energetica de Minas Gerais SA, also plans to sell its stake in Alianca Energia, a joint power plant venture with Brazilian mining company Vale SA, executives said.
Cemig is the public electricity company of Minas Gerais, Brazil’s second most populous state.
The shares of the Sao Paulo-listed company rose 4.4% in midday trade, the second-biggest winner on Brazil’s benchmark Bovespa equity index.
Earlier in the event, Minas Gerais Governor Romeu Zema reiterated his intention to privatize the company, saying he wanted it finished by the end of his term in 2022.
“I want the company to be privatized during my tenure,” said Zema. “Maybe not to sell it outright, but to receive an injection of (private) capital and thereby weaken the state, which always intervenes inappropriately, thus losing controlling stake and stopping hurting Cemig.” (Reporting by Luciano Costa; Written by Gram Slattery; Editing by Louise Heavens and David Gregorio)