UPDATE 1-Engie Brasil approves share offering tied to planned Jirau stake purchase

Updates with further details from the filing and context about the power plant

SAO PAULO, June 10 (Reuters) - Engie Brasil EGIE3.SA said on Wednesday its board approved a public offering of new shares as part of a plan to acquire a stake in the Jirau hydroelectric power plant, according to a securities filing.

  • The company said its controlling shareholder, indirectly owned by France's Engie ENGIE.PA, may take part in the offering by transferring a 40% stake in Jirau to the Brazilian unit.

  • A consultancy hired by Engie Brasil valued the stake at 5.74 billion reais ($1.1 billion).

  • Other terms of the share offering were not disclosed. The transaction still requires shareholder approval.

  • The company said the deal would allow it to add Jirau to its generation portfolio while also raising funds to meet financial commitments and support existing and new projects.

  • Itau BBA and Santander Brasil will act as bookrunners for the offering.

  • Jirau, on the Madeira River in Brazil's Amazon region, has installed capacity of 3,750 megawatts. Its shareholders include Engie, Axia Energia AXIA5.SA and Mitsui & Co 8031.T.

($1 = 5.1832 reais)


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