It was supposed to meet two das ago, though I suspect it has been postponed again. STF seems to have their hands full, to say the least.
Agree. The good news is that the Miinas government is currently controlled by PT (Dilma's party) which will help smooth negotiations. The newly acquired BNDESpar stake in CIG may also be a harbinger of how the negotiations will go.
The Brazilian national government, which is hurting for income, now owns a sizable stake in CIG.
Don't forget that CIG is also owns a minority stake in the Belo Monte dam, which switched on their first generators last month - and will subsequently add to the revenue pool.
To clarify, I meant to say Andrade Gutierrez is under a Lava Jato subject.
The Brazilian press noted that BNDESpar is now a 5.6% owner of CIG's stock, while AGC's stake is now reduced to 8.76% (vs. 14.4% previously).
I think AGC has been a big seller of CIG shares in the past year. Having BNDESpar step in will reduce volatility somewhat
AGC is a subsidiary of the Andrade Gutierrez construction firm, and is currently in the crosshairs of the Lava Jato scandal. From the way I am reading it, BNDESpar just exchanged all of the debentures they held in AGC Energy for the equivalent amount of stock in Cemig - likely to reduce their risk exposure and eliminate their connection to AGC. The payment to shareholders is referring to dividend payments from the CIG shares that AGC held that were going to be passed along to AGC shareholders, must now be given to BNDESpar.
Its essentially reduces the risk to CIG shareholders of AGC selling additional CIG shares to cover their own liabilities.
The controlling stockholder of CIG is the State of Minas Gerais in Brazil, which owns 51% of the common (voting) shares. Another major stockholder is AGC Energia S.A., holding 32.96% of the common shares
"A source close to the matter said LetterOne's proposal would have resulted in Telecom Italia losing control, diluting its 67 percent stake in TIM Brasil to around 30 percent of the combined entity, compared with a share of around 43 percent held by the investment group."
Audiencia ente Cemig e Uniao Sobre Jaguara
- Hearing scheduled for Monday, 22 Feb
- Will probably involve a settlement regarding conditions negotiated for Cemig to continue operating Jaguara and resolution regarding income generated from the plant since concessions ended in August 2013
- Cemig and the government spent January negotiating the settlement terms
Brazil Should Scrap Telecom Rules and Start Over, Official Says
- This is coming direct from an Anatel commissioner
- Also proposing vote to let Oi keep US1.1 billion in fines to reinvest in cellular network.