Rede Energia Chairman Jorge Queiroz Seeks ‘Strategic Partner’ for Company
Jorge Queiroz de Moraes Jr., the controlling shareholder and chairman of Rede Energia SA (REDE4), said he’s seeking a “strategic partner” for the Brazilian energy distributor.
The plan is to sell a minority or controlling stake, Moraes said yesterday in a telephone interview from Sao Paulo. “We are trying to capitalize the company to improve the debt conditions and to find a continuity solution for the business,” he said.
An investment fund of FGTS, Brazil’s workers’ compensation fund, and BNDES Participacoes SA, the investment arm of the state development bank, are also shareholders in the Sao Paulo- based company that distributes electricity in seven Brazilian states, he said.
Moraes said that he didn’t know the company’s total value. He said a “good guess” would be 9 billion reais ($4.84 billion), or six times the 1.5 billion Ebitda, earnings before interest, taxes, depreciation and amortization, a measure of operational cash flow, in the 12 months through September.
Rede Energia has hired Banco Bradesco SA (BBDC4) to advise on the sale, he said.
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