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Phoenix outbids EDF for control of Brazil power firm EMAE

Investment fund Phoenix on Friday won the privatization auction for Brazilian power generator EMAE, outbidding French energy huge EDF to scoop up the managing stake currently held by the state of Sao Paulo in the company.

Phoenix will pay about 1.04 billion reais ($ 200.21 million). for the stake in EMAE, which owns and operates a hydraulic and. energy producing system that stretches throughout Sao Paulo,. Brazil's most populated and wealthiest state.

The mutual fund's winning quote stood at 70.65 reais. per share, a premium of 33.68% over the minimum deal set by. auction rules, beating EDF Brasil's quote of 70.31 reais per. share.

Matrix Energy, a joint venture in between asset supervisor Prisma. Capital and a subsidiary of Switzerland-based Duferco Group,. likewise participated in the auction, but stopped bidding when. offers rose to 59.20 reais per share.

Sao Paulo state, which owns 97.6% of EMAE's typical shares,. chosen to sell its stake in the company as part of a privatization. spree that must also see it quit control of local water. energy Sabesp later this year.

We are following our administration's strategies to the. letter, Governor Tarcisio de Freitas stated after the auction,. which Freitas stated surpassed expectations.

EMAE was the last power company owned by Sao Paulo. state. Its main property is the Henry Borden hydroelectric plant,. with 889 megawatts (MW) of power.

Latin America's biggest utility, Eletrobras,. is a pertinent investor in EMAE, holding 64.8% of its. preferred shares. The Brazilian power giant, however, has. expressed interest in divesting the possession in the future.

(source: Reuters)