By Rogerio Jelmayer
SAO PAULO--The board of Brazil's state-run Banco do Brasil SA
(BBAS3.BR) has authorized the sale of a 19% stake in local power
generation company Itapebi Geracao de Energia S.A. to electricity
generator and distributor Neoenergia SA (GNAN3B.SM).
Banco do Brasil said late Monday that it expects to post a
one-time gross gain worth 174.9 million Brazilian reais ($76
million) if the sale takes place.
The stake in Neoenergia is held by the investment bank unit of
Banco do Brasil.
In November, Neoenergia said it was in talks to acquire a 58%
stake in Itapebi.
Another 16.4% is controlled by Previ, the pension fund of
workers of Banco do Brasil, while 22.6% is controlled by Spanish
utility Iberdrola SA (IBE.MC).
Itapebi posted gross revenue of 334 million Brazilian reais in
2012 and a net profit of 186 million Brazilian reais.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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