Brookfield submits formal bid for control over Renova - 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 made a formal bid on Monday to take control of Brazilian renewables company Renova Energia SA (BVMF:RNEW11), Reuters reports.
Two informed people told the news agency that Brookfield is proposing to acquire Light SA’s (BVMF:LIGT3) 16% stake in Renova and then dilute the company’s other two major investors -- Cia Energetica de Minas Gerais SA (BVMF:CMIG4), or Cemig, and RR Participacoes SA -- by pouring BRL 800 million (USD 242m/EUR 213m) in fresh capital.
The offer to Light will amount to BRL 9.00 per Renova unit, comprising both common and preferred shares, according to the report.
In late May, Renova signed deals to sell its minority interest in US renewables yieldco TerraForm Global Inc (NASDAQ:GLBL) to Brookfield for USD 92.8 million (EUR 81.7m) in cash. The Canadian asset manager has also agreed to take control of TerraForm Power Inc (NASDAQ:TERP), a sister company of TerraForm Global, both of which were established by bankrupt US renewables developer SunEdison (OTCMKTS:SUNEQ).