DEAL OF THE YEAR: Equity Follow-On

DEAL OF THE YEAR: Equity Follow-On

Brazil Equity Corporate & Sovereign Strategy

It was the follow-on that wasn’t a follow-on. Faced with a 3.5% free float, a miniscule amount of trading activity and a promise made to change all that, Brazilian utility Cemig faced a tricky task in selling 27 million units of its Transmissora Aliança de Energia Elétrica (Taesa) subsidiary. The sale, which would really need to be a second IPO, had been in the works ever since the Brazilian utility had bought Brazilian transmission assets of Italy’s Terna in 2009. Good windows for equity issuance in Brazil were few and far between. Working in the transmission company’s favor, however, was investor preference for defensive stocks. Taesa also offers shareholders a high dividend yield – i

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