Renova accepts binding offer for 305-MW Phase B of Alto Sertao

Renova Energia SA (BVMF:RNEW11) has accepted Prisma Capital Ltda's binding proposal to acquire the 305-MW Phase B of its roughly 743-MW Alto Sertao III wind power complex.

Prisma made the stalking horse bid, in which its enjoys preferential rights for the acquisition, in August of this year.

The transaction is subject to conditions such as securing approval at the General Creditors' Meeting and the structuring of a competitive process for Phase B's Isolated Productive Unit (UPI), part of Renova's ongoing judicial reorganisation process, the Brazilian renewables developer said.

According to a filing on Thursday night, the proceeds raised from this deal will be used for the fulfillment of Renova's obligations under its Judicial Recovery Plan as well as for the resumption of works on the 438-MW Phase A of Alto Sertao III.

In 2019, Brazilian energy firm AES Tiete Energia SA (BVMF:TIET11) was negotiating the purchase of Alto Sertao III and a 1.1-GW wind project pipeline but the deal fell through.

Renova filed a Judicial Recovery Plan on December 18, 2019, pointing at its inability to complete Phase A as the main reason behind its difficulties.

(BRL 1.0 = USD 0.179/EUR 0.152)

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