Singapore state investor GIC Pte and the Canada Pension Plan Investment Board (CPPIB) have not bought shares in Eletrobras‘ privatisation offering because they demanded prices below what the Brazilian government was willing to accept, two sources with knowledge of the matter said on Friday.
CPPIB and GIC each had orders of 4 billion reais ($802 million), but those were conditioned on the offering being priced below the 42 reais demanded by the government at the offering, the sources added, asking for anonymity to disclose private discussions.
Financial blog Brazil Journal reported the funds withdrawal earlier in the day.
CPPIB declined to comment. GIC did not immediately respond to Reuters requests for comment.
Both were expected to become relevant shareholders in Centrais Eletricas Brasileiras SA, as Eletrobras is formally known, alongside 3G Radar, which was the company’s largest private shareholder before the offering and participated in the privatisation.
Reuters