February 26 (Renewables Now) - The Brazilian subsidiary of Canada's Brookfield Asset Management Inc (TSE:BAM.A) has changed its mind about local renewables firm Renova Energia SA (BVMF:RNEW11) and now only seeks to acquire some of its assets.
Brookfield Energia Renovavel SA has made a new binding offer that replaces the one made in November 2017, Renova said on Friday. The prior offer envisaged a primary contribution of BRL 1.4 billion (USD 432m/EUR 350m) that would have given the company a controlling stake in Renova.
Brookfield Energia Renovavel is now offering to buy just the Alto Sertao III wind power complex and some other power generation assets currenlty under development with a combined capacity of 1.1 GW. The suitor has proposed to pay BRL 650 million (USD 200.7m/EUR 163.3m) for Alto Sertao III, plus earn-out of BRL 150 million dependent on the generation capacity of the wind complex. In addition, it is ready to pay BRL 187,000 per MW as part of the proposed purchase of the other projects.
Renova, which approved the initial offer, is currently considering the new one. If the bid is approved, Brookfield will be granted a 30-day exclusivity period to complete the transaction paperwork. The period could be extended for a further 30 days.
(BRL 1 = USD 0.31/EUR 0.25)