Light to sell 17% stake in Brazil's Renova Energia to CG I fund

Brazilian energy company Light SA (B3:LIGT3) announced today it has signed an agreement to sell its 17.17% share in renewables developer Renova Energia SA (BVMF:RNEW11) to CG I Fundo de Investimento em Participacoes Multiestrategia.

In all, Light is selling about 7.16 million common shares and 98 preferred shares for a symbolic price of BRL 1 (USD 0.244/EUR 0.221) to CG through its subsidiary Light Energia SA. Closing is subject to certain conditions, including notices to BNDES Participacoes SA (BNDESPAR) and utility Cemig SA (BVMF:CMIG4).

The seller noted that this transaction reflects its strategy to shed non-core assets.

According to the filing, CGI has pledged to sell Renova shares to Cemig Geracao e Transmissao SA (Cemig GT), if the latter choses to make use of its preemptive rights. Cemig, is a shareholder in both Light and Renova.

Light’s subsidiary, Lightcom Comercializadora de Energia SA, has also committed to assign all of the credits held against Renova to CG.

(BRL 1 = USD 0.244/EUR 0.221)

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