Bloomberg — Itaúsa (ITSA3), the holding company of the Setubal and Villela families in Brazil, and Canada’s Caisse de Dépôt et Placement de Québec (CDPQ) are among those interested in acquiring a minority stake in Neoenergia’s transmission lines , according to sources familiar with the matter said to Bloomberg News.

The GIC, which manages Singapore’s international reserves, and Canada’s Ontario Teachers’ Pension Fund are also in talks, the people said, asking not to be named as the discussions are private. The transaction is expected to yield around 500 million euros immediately, plus future investments., people said. JPMorgan (JPM) and Itaú (ITUB4) advise Neoenergia, according to the people.

Neoenergia, Itaúsa, Ontario Teacher, CDPQ, JPMorgan and Itaú declined to comment. The GIC did not respond to requests for comment.

Neoenergia – controlled by Iberdrola SA, headquartered in Bilbao, which has a 53.5% stake – has around 18 transmission lines, 9 of which are already in service with around 2,300 km, the company said in his presentation.

Eduardo Capelastegui Saiz, president of Neoenergia, said in a conference call with analysts in October that the company is looking for a “financial partner” and not an “industrial partner” because the idea is not to sell control or give up management.

The partner would enter operating lines, but also commit to investing in future batches, he said. “It’s a long-term partnership,” he said, adding that “at the moment we have 8 lines or 9 lines in operation, so there would be immediate cash flow” for the business. The aim is to announce a deal in the first half of this year, he said, because “we have many interested parties” but “it’s a complex operation”.

He did not mention the banks contracted to advise on the deal or the names of interested investors.

See more at Bloomberg.com

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