Renova Energia to sell brazilian wind farm to AES Corp for up to $214 million
Brazil's Renova to sell
386MW Alto Sertão II wind complex in the northeastern state of Bahia
Petroleumworld.com 01 03 2017
Brazil's renewable power generation company Renova Energia SA ( RNEW11.SA ) is in talks to sell its wind farm Alto Sertao II to the Brazilian unit of AES Corp ( AES.N ), known as AES Brasil, for 600 million reais to 700 million reais ($214 million), a source with direct knowledge of the matter told Reuters on Monday.
AES Brasil submitted a formal proposal last week, the person said. Due diligence work has also been concluded, the person added. Renova plans to use the proceeds to repay debts.
Units in Renova accelerated their rise after Reuters reported the deal. The unit, a blend of common and preferred shares, rose 22.5 percent to 7.35 reais in early Monday afternoon trading.
The Alto Sertao II wind farm has been in operation since 2014. Renova could also use part of the proceeds to finish construction of 400-megawatt wind farm Alto Sertao III, which is 90 percent built, said the person.
Renova did not immediately respond to requests for comment. AES Brasil said power generation company AES Tiete Energia SA is looking into investment opportunities, but it did not comment directly on Alto Sertao II.
Controlling shareholder Companhia Energetica de Minas Gerais SA ( CMIG4.SA ) has been trying to find ways to boost Renova's capital since a failed deal late in 2015 with SunEdison Inc ( SUNEQ.PK ) sharply reduced Renova's expected cash position and compromised long-term investments.
Cemig, as the company is known, is looking to bring in a partner for Renova. The person expects that process to be concluded within the next three months.
Last year, Renova cut its investments and renegotiated terms of power sales to alleviate the cash shortage.
Story by Guillermo Parra-Bernal from Reuters. Additional reporting by Luciano Costa; Writing by Tatiana Bautzer; Editing by Andrea Ricci and Alan Crosby.
reuters.com | 01 02 2016
Copyright© 1999-2016 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to email@example.com
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels