Volume 2, issue #10 - 14-04-1997

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Brazil to divest 82.4 % of preferred stocks in CEB

Mar. 26, 1997 The Brasilia government (Brazil) will divest 82.4 % of its preferred stocks in the local electric power company CEB (Companhia Energetica de Brasilia), corresponding to 18 % of the overall capital. The stocks are valued at R$ 80 mm and will be sold out by early May 1997. The government will maintain 94 % of CEB's common stocks and 45.3 % of its total capital, while other 37% of the total capital are owned by state-owned companies. The stocks sale is being arranged by BRB (Banco Regional de Brasilia) and Banco do Brasil. CEB posted net profits of R$ 25.1 mm over 1996 up from R$ 11.8 mm over 1995. Its investments were raised from R$ 24 mm over 1995 to R$ 36 mm over 1996. The return on equity reached 6% over 1996 and it will distribute dividends worth R$ 7.5 mm.