Renewable Energy

Brookfield close to buying stake in Brazil's Renova, source says

Reuters
02/03/2017 14:14
Visualizações: 2580 (0) (0) (0) (0)

Brookfield Asset Management Inc is nearing an accord to buy a 30 percent stake in Renova Energia SA, which would include 800 million reais ($258 million) in fresh capital for the Brazilian renewable energy company, a person directly involved in the transaction said on Wednesday.

Under terms of the deal, which could be announced in coming weeks, Canada's Brookfield would purchase the 15.7 percent stake that Light Energia SA has in Renova and then pump fresh cash into the company, said the person. Currently, Light forms part of a controlling bloc that owns about 64 percent of Renova.

Last year, Renova struggled with a severe cash crunch. By injecting capital, Brookfield is giving Light a chance to exit the company while diluting the other two members of Renova's controlling bloc, Cia Energetica de Minas Gerais SA and RR Participacoes SA. 

The Brookfield stake purchase will be formalized once Renova completes the sale of the Alto Sertao II wind farm project to a local unit of AES Corp, scheduled to take place next week, the person said.

The transaction should help put Renova Energia, which was founded in 2001, "back in the game," the person said. Financing conditions for Renova worsened when a partnership with SunEdison Inc collapsed weeks before SunEdison filed for Chapter 11 bankruptcy protection in the United States.

Often seen as resilient during downturns, Brazil's renewable electricity industry has wrestled with the impact of declining electricity consumption stemming from the country's harshest recession ever and high borrowing costs.

Renova did not have an immediate comment on whether Brookfield would buy a stake. Light, Cemig and RR Participacoes also had no immediate comment. Brookfield declined to comment.

Reuters reported in April and September last year that Renova was looking for a partner and fresh capital.

Most Read Today
see see
Navalshore
Firjan SENAI presents the Supplier Opportunities Network...
17/08/26
Equatorial Margin
Morpho Well: Petrobras discovers hydrocarbons in ultra-d...
15/08/26
Power Generation
Campo Grande hosts four days of debates on bioenergy and...
12/08/26
International
KPMG: fossil fuel consumption falls, despite oil's signi...
12/08/26
Fenasucro
Fenasucro & Agrocana opening highlights Brazil's leaders...
12/08/26
Event
IBP and BIP bring together leaders to discuss technology...
11/08/26
Event
Asset Management gains prominence in corporate strategy;...
11/08/26
Macaé
Foresea takes part in WSOP 2026 and reinforces that safe...
11/08/26
Sergipe-Alagoas Basin
Siemens Energy advances offshore expansion in Brazil wit...
10/08/26
Campos Basin
Raia Project Reaches New Milestones in One of Brazil’s M...
06/08/26
Permanent Offer
ANP Takes Part in Ceremony Marking the Signing of Contra...
05/08/26
SOG 2026
ABPIP Strengthens Territorial Development Agenda in Serg...
04/08/26
SOG 2026
SOG26 Surpasses the Previous Edition and Reinforces Serg...
03/08/26
People
Shell Brasil Begins a New Leadership Cycle with João San...
03/08/26
Results
ANP Releases Consolidated Data on Oil and Gas Production...
03/08/26
SOG 2026
Banco do Nordeste Has R$ 504 Million for the Energy Sect...
03/08/26
PPSA
TotalEnergies and ExxonMobil Win Atapu and Bacalhau Cargoes
31/07/26
SOG 2026
Sebrae Sergipe Strengthens Small Businesses and Expands ...
31/07/26
PPSA
PPSA Expects to Hold the First Auction of the Union’s Na...
30/07/26
SOG 2026
Sergipe Oil & Gas 2026 Begins with a Focus on Investment...
30/07/26
SOG 2026
Petrobras Director Opens Sergipe Oil & Gas with Analysis...
30/07/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.