We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Comp En De Mn Cemig ADS (CIG) - $25 value - yours FREE >>
DTE Energy Company (DTE) - $25 value - yours FREE >>
American Electric Power Company, Inc. (AEP) - $25 value - yours FREE >>
Image: Bigstock
CEMIG to Sell 49% Stake in Transchile Charrua to Ferrovial
Brazilian electricity company Companhia Energetica de Minas Gerais (CIG - Free Report) , also known as CEMIG, recently announced that it has signed an agreement to sell its interest in Transchile Charrúa Transmisión S.A. to Ferrovial Transco Chile SpA, a controlled-company of Ferrovial S.A.
Per the share repurchase agreement, CEMIG will be disposing its entire interest, equivalent to roughly 49% of the share capital, in Transchile Charrúa. The transaction has been valued at approximately $56.6 million.
CEMIG anticipates the disposition to be complete after fulfilment of the agreed terms.
CEMIG is one of the largest integrated electric utilities in Brazil, with approximately 97% of its installed generation capacity being hydroelectric power. In addition to its integrated electricity business, the company is engaged in natural gas distribution and telecommunications. Over the long run, the company will benefit from rise in electricity demand in Brazil. In order to leverage benefits from the rising demand, the company seeks to increase its production and distribution capacity.
Over the last 60 days, the Zacks Consensus Estimate for CEMIG increased 8.3% to 26 cents per share for 2016 and by 19.2% to 31 cents per share for 2017.
CEMIG SA -ADR Price and Consensus
CEMIG SA -ADR Price and Consensus | CEMIG SA -ADR Quote
Zacks Rank & Other Stocks to Consider
With a $3.4 billion market capitalization, CEMIG currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the utility-electric power industry include Spark Energy, Inc. , American Electric Power Co., Inc. (AEP - Free Report) and DTE Energy Company (DTE - Free Report) . While Spark Energy sports a Zacks Rank #1 (Strong Buy), both American Electric Power and DTE Energy Company carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>