(Bloomberg) -- Centrais Eletricas Brasileiras SA, a Brazilian power company known as Eletrobras, obtained bondholders’ approval to carry out a public share sale of its stake in ISA Cteep-Companhia de Transmissão de Elétrica Energia Paulista, according to people familiar with the matter. 

The transaction may occur anytime and would raise around 4 billion reais ($780 million), the people said, asking not to be identified discussing information that’s not public. The timing would depend on market conditions, the people said.  

On Oct. 31, Eletrobras said its board approved “the structuring of a potential public offering of preferred stocks” from Cteep, and the hiring of Citigroup Inc, Banco Itau BBA SA, Banco Safra SA and XP Inc as underwriters. But Eletrobras put the deal on hold less than a week later.

Read More: Eletrobras Decides to Suspend Potential CTEEP Share Offering

Cteep extended losses and touched session lows after the news, while Eletrobras trimmed losses.

Just after announcing the deal, Eletrobras discovered it would need approval from local bondholders to sell all of the shares it wanted to, the people said. 

Now, Eletrobras has received the support it needs from bondholders, and meetings to approve the authorization formally are already taking place, the people said. The last one was on April 19, one of the people said.

The sale is part of a strategy that Eletrobras defined after it was privatized, in June 2022, to reduce its minority and non-strategic holdings, in addition to simplifying and optimizing its portfolio.

Eletrobras has 9.73% of ISA Cteep voting shares and 52.48% of the firm’s preferred stocks. 

In September, Eletrobras sold its stake in Companhia Paranaense de Energia, know as Copel, for 125.3 million reais.

Eletrobras declined to comment.

--With assistance from Leda Alvim.

(Updates to add market moves in fourth paragraph)

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