Renova accepts Brookfield's USD-433m offer

The board of Brazilian renewables firm Renova Energia SA (BVMF:RNEW11) has decided in favour of accepting the BRL-1.4-billion (USD 433m/EUR 362.9m) primary contribution proposal from Brookfield Energia Renovavel SA.

Renova informed the market about this decision on Friday. The proposal envisages paying BRL 6 per unit plus an earnout of up to BRL 1 apiece, dependent on the amount received by Renova from any future adjustment in the sale price of the Alto Sertao II Wind Complex.

The local unit of Canada's Brookfield Asset Management Inc (TSE:BAM.A) was also granted a 60-day exclusivity period, that if needed can be extended for a further 30 days, to do the paperwork. The deal will be appraised by Renova's directors and its controlling shareholders.

Its conclusion will be complete after approval by Renova and its controlling stockholders and following the fulfillment of precedent conditions, the company said.

According to past media reports, Brookfield is targeting the combined controlling stake in Renova held by Brazilian utility Cemig (BVMF:CMIG4) and its subsidiary Light SA (BVMF:LIGT3).

(BRL 1 = USD 0.309/EUR 0.259)

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