March 29 (Bloomberg) -- Shares of Light SA, Brazil's second-biggest electricity distributor, plunged after the company was sold to a Brazilian investment group, led by Cia. Energetica de Minas Gerais, Brazil's largest integrated power Company, at a price below what some investors expected.

Shares of the Rio de Janeiro-based utility fell 19 percent to 14.90 reais in Sao Paulo, following a 9.5 percent drop yesterday. The group led by Cemig agreed to buy the unprofitable utility for $319.8 million, or about 6.79 reais ($3.01) per 1,000 shares, a third of Light's closing price of 18.48 reais.

``The price was low,'' said Rafael Quintanilha, a power utility analyst at Agora CTVM, Brazil's biggest stock brokerage, in a telephone interview from Rio de Janeiro. ``The price paid was well blow expectations.''

Rio Minas Energia Participacoes SA will buy 80 percent of Light Servicos de Eletricidade and make a bid for the remaining minority stakes, Light said in a statement sent by e-mail yesterday evening. Some investors had been purchasing the stock in the past month on speculation buyers would pay a premium over the company's stock price when they bid for the remaining minority stakes, Quintanilha said.

Cemig, construction company Andrade Gutierrez, Pactual Energia Participacoes SA and JLA Participacoes SA each own a quarter of Rio Minas.

To contact the reporter on this story: Romina Nicaretta in Sao Paulo at at Rnicaretta@bloomberg.net

Last Updated: March 29, 2006 16:50 EST