China to buy 7 Brazil transmission firms – reports

* Plena Transmissoras to sell transmission groups

* China’s state-run electricity grid firm to pay $1.7 bln

* Deal subject to regulatory approval

RIO DE JANEIRO, May 18 (BestGrowthStock) – China’s state-run
electricity grid firm has agreed to buy seven Brazilian
transmission companies from Plena Transmissoras for 3.1 billion
reais ($1.72 billion), local media reported on Tuesday.

Plena, controlled by a group of Spanish energy firms, will
sell seven of its 12 transmission divisions to State Grid Corp
of China, according to the business daily Valor Economico,
which cited a Plena official.

The deal, which is subject to regulatory approval, includes
the transfer of 1.3 billion reais ($722 million) in Plena debt
to the Chinese company, which will receive access to 3,000
kilometers (1,864 miles) of transmission lines in Brazil.

Plena, controlled by Spanish firms Elecnor (ENOR.MC: ),
Isolux and Cobra, previously rejected buyout offers from Cemig
(CMIG3.SA: ), run by Brazil’s state of Minas Gerais, and
Colombia’s ISA group, Valor said.

The vast majority of Brazil’s transmission companies are
run by the Brazilian government.

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(Reporting by Brian Ellsworth; editing by John Wallace)

China to buy 7 Brazil transmission firms – reports