November 13 (Renewables Now) - Brazilian renewables firm Renova Energia SA (BVMF:RNEW11) has received a binding proposal from Canada's Brookfield Asset Management Inc (TSE:BAM.A) for a primary contribution of BRL 1.4 billion (USD 427.2m/EUR 366.1m).
Renova informed the market about this development early on Saturday morning. Brookfield's proposal envisages paying BRL 6 per unit plus an earnout of up to BRL 1 apiece, dependent on the amount received by Renova from any future adjustment in the sale price of the Alto Sertao II Wind Complex.
If the bid is approved, Brookfield will be granted a 60-day exclusivity period, that could be extended for a further 30 days, to complete the transaction paperwork. The potential deal will be reviewed by Renova's board and its controlling shareholders.
Brookfield already held exclusive negotiations about a potential investment in Renova over a period of 90 days, which however did not lead to an immediate proposal.
According to media reports, Brookfield is targeting the combined controlling stake in Renova held by Brazilian utility Cemig (BVMF:CMIG4) and its subsidiary Light SA (BVMF:LIGT3). Reuters said in early October that the Canadian company had decided to stick to its initial non-binding proposal of BRL 9 per share after discovering liabilities that were previously unaccounted for, tied to an unnamed Renova project.
(BRL 1 = USD 0.305/EUR 0.262)