Light Energia, Cemig eye buyout of Brazil's Renova

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

March 22 (Renewables Now) - Brazilian energy company Light SA (BVMF:LIGT3) approved on Thursday the purchase of a stake in local renewables developer Renova Energia SA (BVMF:RNEW11) alongside Cemig SA (BVMF:CMIG4).

More specifically, Light's subsidiary Light Energia and Cemig GT will buy 7,282,036 shares issued by Renova that are currently owned by CGI Fundo de Investimento em Participacoes.

According to a regulatory filing, Cemig GT will take 67.85% of the shares currently held by CGI while Light Energia will acquire the remaining 32.15%. In exchange, CGI will receive debt securities held by both companies corresponding to BRL 14.68 (USD 3.78/EUR 3.34) for each share issued by Renova.

The deal is subject to certain approvals. Light also announced a plan for a public offer targeting the remaining outstanding shares of Renova, conditioned to the close of this transaction.

The same day, Renova approved a new acquisition proposal made by local firm AES Tiete Energia SA for the 400-MW Alto Sertao III wind farm.

(BRL 1 = USD 0.26/EUR 0.23)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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