Brookfield agrees Renova transactions - report

Wind farm in Rio Grande do Sul. Author: Alexandre Pereira. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

Canada’s Brookfield Asset Management Inc (TSE:BAM.A) has reached an agreement that allows it to take control of Brazilian renewables company Renova Energia SA (BVMF:RNEW11), Reuters reports.

An unnamed source told the news agency on Friday that Brookfield will first buy the 20.3% stake in Renova held by Light SA (BVMF:LIGT3) and then inject some BRL 800 million (USD 256m/EUR 234m) in the renewable energy firm. The capital injection will dilute current controlling shareholder Cemig (BVMF:CMIG4), which presently owns 44%, according to the report.

The terms of the deal are yet to be approved by the board of Cemig, possibly at a meeting this week.

At the same time, Brookfield is expected to pay USD 120 million (EUR 110m) to get Renova’s stake in TerraForm Global Inc (NASDAQ:GLBL), Reuters added. The Canadian company signed a deal to acquire the yieldco and take control of its sister company TerraForm Power Inc (NASDAQ:TERP) in March 2017.

(BRL 10 = USD 0.320/EUR 0.292)

(USD 1.0 = EUR 0.913)

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