Mubadala emerges as winner in process to buy small hydro co in Brazil

Brazilian renewables company Renova Energia SA (BVMF:RNEW11) confirmed on Thursday that it has selected Emirati state-owned holding company Mubadala as the winner in the competitive process to buy its small hydropower (HPP) unit.

The BRL-1.1-billion (USD 194m/EUR 164m) proposal, made by SF 369 Participacoes Societarias SA, a subsidiary of Mubadala Consultoria Financeira e Gestora de Recursos Ltda, targets Renova’s entire interest in Brasil PCH SA.

On its website, Renova says that it acquired a 51% stake in Brasil PCH in January 2014, thus adding 148.4 MW to its portfolio. According to the company, the new transaction will be communicated to Brasil PCH’s other shareholders, BSB Energetica SA and Eletroriver SA, who may decide to exercise their preemptive right to acquire the interest not already held by them.

The funds obtained from the sale will be used for the completion of Phase A of the Alto Sertao III wind power complex.

Renova informs that the deal is pending the approval of the court where the company's Judicial Recovery Process is being processed. Renova filed for bankruptcy in October 2019.

(BRL 1.0 = USD 0.194/EUR 0.164)

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