February 28 (Renewables Now) - The board of Brazilian renewables firm Renova Energia SA (BVMF:RNEW11) has decided in favour of accepting the BRL-650-million (USD 200m/EUR 163.3m) primary contribution proposal from Brookfield Energia Renovavel SA.
Renova informed the market about this decision on Tuesday.
The proposal envisages the buy of the Alto Sertao III wind complex, currently with 433 MW in already signed power purchase agreements (PPAs) and 288 MW that took part in the December 2017 energy auction, the company said.
In addition to the proposed BRL 650 million, the local unit of Canada's Brookfield Asset Management Inc (TSE:BAM.A) offered a earn-out of BRL 150 million dependent on the generation capacity of the wind complex. Apart from Alto Sertao III, Brookfield is also buying 1.1 GW of other wind generation assets currenlty under development, for BRL 187,000 per MW to be paid as earn-out.
Brookfield was granted a 30-day exclusivity period to complete the transaction paperwork. The period could be extended for a further 30 days, Renova noted.
(BRL 1 = USD 0.31/EUR 0.25)