May 21 (Renewables Now) - Brazilian energy company CPFL Energia (BVMF:CPFE3) has entered into a memorandum of understanding (MoU) with its controlling shareholder State Grid Brazil Power Participacoes SA aimed at buying the latter's shares in CPFL Energias Renovaveis (BVMF:CPRE3).
The local unit of State Grid Corporation of China has already indicated it would sell the shares it holds in the renewable energy firm at a price of BRL 16.85 (USD 4.11/EUR 3.68) per share, according to an announcement on Tuesday. Negotiations are still ongoing though.
The final approval of the transaction, including the price, is yet to be made by CPFL Energia's board of directors.
If this transaction is executed, CPFL Energia will no longer need to issue new shares in a potential future consolidation involving the renewables arm, which could compromise the compliance with local laws, the firm points out in its filling.
(BRL 1 = USD 0.24/EUR 0.22)