Brookfield changes mind about higher Renova bid - report

Wind farm. Author: fantastklywell.

October 6 (Renewables Now) - Brookfield Asset Management Inc (TSE:BAM.A) is no longer willing to bid a higher price for Renova Energia SA (BVMF:RNEW11) after concluding a final round of auditing in the Brazilian renewable power producer, Reuters reports.

The Canadian asset manager has found liabilities that were previously unaccounted for, an informed person told the news agency. These liabilities are tied to an unnamed project, according to the report.

As a result, Brookfield is now expected to make an offer of just BRL 9.00 (USD 2.84/EUR 2.43) per unit for the combined majority stake held by Brazilian utility Cemig (BVMF:CMIG4) and its subsidiary Light SA (BVMF:LIGT3). The company may even pay just BRL 7.00 per unit at first and the remaining portion after the completion of the 400-MW Alto Sertao III wind park, Reuters added.

Last Friday, the news agency reported that Brookfield was considering making an offer of up to BRL 11.75 per unit.

An offer could be made within days, according to one of Reuters’ sources.

(BRL 1.0 = USD 0.316/EUR 0.270)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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