October 2 (Renewables Now) - Canada’s Brookfield Asset Management Inc (TSE:BAM.A) could decide to sweeten its bid for a controlling stake in Brazilian renewable power producer Renova Energia SA (BVMF:RNEW11) even more than initially reported, Reuters said on Friday.
Two people with direct knowledge of the matter told the news agency that Brookfield is considering making an offer of BRL 11.75 (USD 3.71/EUR 3.16) for each unit held by Brazilian utility Cemig (BVMF:CMIG4) and its subsidiary Light SA (BVMF:LIGT3). Earlier in September, Reuters reported that the Canadian asset manager was planning on raising its initial offer of BRL 9 apiece to BRL 11.25 per unit. Each unit includes one common and two preferred shares.
According to the latest report, Cemig and Light are ready to exit Renova, but one of the sources told Reuters that they want at least BRL 12.25 per unit. The two potential sellers hold a combined stake of 64.4%.
Reuters’ sources have said that Brookfield would make its new offer within days. If the proposal turns into a formal bid, the Canadian company would pay around BRL 1.05 billion for the majority stake, Reuters added.
In mid-September, Renova announced it had provided Brookfield with more time, until October 17, to carry out due diligence and negotiate a transaction.
(BRL 1.0 = USD 0.316/EUR 0.269)