The consultancy arm of Canadian-owned energy group Brascan Ltd signed a contract with the government of Brazil’s southernmost state, Rio Grande do Sul, to carry out the valuation and structuring of the privatization process of state telco Companhia Riograndense de Telecomunicacoes (CRT) on Monday. Whereas in the rest of the country the federal government owns the telecoms network and is preparing to privatize it, CRT is controlled by the Rio Grande state government, with Spain’s Telefonica de Espana holding 35% it acquired in January last year. The auction at which the majority shareholding is to be sold off is set for June, though Telefonica is contractually guaranteed first refusal on the state’s shares.
