SAO PAULO, April 19 (Reuters) - Investment fund Phoenix on Friday won the privatization auction for Brazilian power generator EMAE, outbidding French energy giant EDF to scoop up the controlling stake currently held by the state of Sao Paulo in the firm.

Phoenix will pay about 1.04 billion reais ($200.21 million) for the stake in EMAE, which owns and operates a hydraulic and energy generating system that stretches across Sao Paulo, Brazil's most populous and wealthiest state.

The investment fund's winning bid stood at 70.65 reais per share, a premium of 33.68% over the minimum offer set by auction rules, beating EDF Brasil's bid of 70.31 reais per share.

Matrix Energy, a joint venture between asset manager Prisma Capital and a subsidiary of Switzerland-based Duferco Group, also participated in the auction, but stopped bidding when offers rose to 59.20 reais per share.

Sao Paulo state, which owns 97.6% of EMAE's common shares, decided to sell its stake in the firm as part of a privatization spree that should also see it give up control of local water utility Sabesp later this year.

"We are following our administration's plans to the letter," Governor Tarcisio de Freitas said after the auction, which Freitas said exceeded expectations.

EMAE was the last power company owned by Sao Paulo state. Its main asset is the Henry Borden hydroelectric plant, with 889 megawatts (MW) of power.

Latin America's largest utility, Eletrobras, is a relevant shareholder in EMAE, holding 64.8% of its preferred shares. The Brazilian power giant, however, has expressed interest in divesting the asset in the future. ($1 = 5.1946 reais) (Reporting by Leticia Fucuchima; Writing by Gabriel Araujo; Editing by Kylie Madry)