Brazil's Renova concludes sale of small hydro unit for USD 177m

Brazilian renewables company Renova Energia SA (BVMF:RNEW11) confirmed on Thursday that it has concluded the sale of its small hydropower (HPP) unit.

The BRL-1.1-billion (USD 177m/EUR 156m) deal had Renova transfer its entire interest in Brasil PCH SA to the target company’s other shareholders, namely BSB Energetica SA and Eletroriver SA.

In August, Renova picked SF 369 Participacoes Societarias SA, a subsidiary of Emirati state-owned holding company Mubadala, as the winner in the competitive sale process. However, in mid-September, BSB Energetica and Eletroriver decided to exercise their preemptive right to acquire the interest not already held by them.

According to Renova's website, it acquired a 51% stake in Brasil PCH in January 2014, thus adding 148.4 MW to its portfolio.

The company said that the completion of the divestment allows the entire group to reduce its indebtedness by about BRL 740 million. It will use the sale proceeds to settle a Debtor in Possession (DIP) loan and some bankruptcy creditors and out of court proceedings, while also supporting works to finalise Phase A of the Alto Sertao III wind power complex.

Renova filed for bankruptcy in October 2019.

(BRL 1.0 = USD 0.177/EUR 0.156)

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