SAO PAULO, May 28 (Reuters) - Brazilian utility firm BRK

Ambiental is in talks with investment banks to assess a

potential capitalization of the company, which could include

asset sales, it said in a securities filing.

The firm said the talks, which are at an early stage,

include a potential partial divestment of some assets, such as

some concessions in the states of Sao Paulo state and Espirito

Santo, according to the filing late on Monday.

On Monday, local newspaper Valor Economico reported that

BRK's controlling shareholder, Canadian asset manager Brookfield

, had hired banks to advise it on a potential deal to

exit BRK.

The Brazilian company said it was informed by Brookfield

that there are currently no negotiations underway for a sale of

its stake.

"The company (and not its controlling shareholder) is in

talks with investment banks to advise it in structuring and

searching for opportunities with potential investors," BRK said.

BRK said a potential initial public offering could be one of

the alternatives. The firm filed for an IPO in mid-2022 but

later decided to cancel it.