Cemig to exit Brazil's Renova as Brookfield hints at higher bid: Reuters
Cia Energética de Minas Gerais SA and a subsidiary plan to exit their controlling stake in Brazilian renewable power company Renova Energia SA as Brookfield Asset Management considers raising a takeover bid more than initially expected, sources told Reuters. According to the sources, Brookfield would offer Cemig and subsidiary Light SA the equivalent of 11.75 reais (US$3.72) per unit of Renova. Getting the nod from both Cemig and Light would enable Canada-based Brookfield to take control of Renova more assertively and expand faster in Brazil’s renewable power industry. If the improved proposal materializes into a formal bid, Brookfield would spend about 1.05 billion reais (US$332.3 million) to win control of Renova. Brookfield could either pump an extra 800 million reais into Renova or take the company private, Reuters reported on September 8.
