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Economics & Trade Investment

China's State Grid has $6 billion to buy CPFL stakes, sources

China’s State Grid International Development Ltd has 20 billion reais ($6.02 billion) to buy minority stakes held by shareholders of CPFL Energia SA, two government sources told Reuters on Wednesday. State Grid, the world’s largest utility, will grant the same price it offered to Camargo Correa SA, the largest holder in CPFL, said the sources, who requested anonymity because they were not allowed to speak publicly. Camargo Correa agreed last week to sell its stake for 5.85 billion reais ($1.76 billion), and will receive 25 reais per share, nearly 22% more than the share price on the day prior to the announcement of the deal.

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