Canada’s Brookfield Asset Management Inc may soon reach an agreement to buy a 30 per cent stake in Renova Energia SA, which would include 800 million reais ($344-million) in fresh capital for the Brazilian renewable energy company, a person directly involved in the transaction said on Wednesday (1), reported the Toronto-based newspaper The Globe&Mail.
If the deal is agreed, Brookfield would purchase the 15.7 per cent stake that Light Energia SA has in Renova and then pump fresh cash into the company. Light currently integrates the controlling bloc that owns about 64 per cent of Renova.
AccordintLast year, Renova struggled with a severe cash crunch. By injecting capital, Brookfield is giving Light a chance to exit the company while diluting the other two members of Renova’s controlling bloc, Cia Energética de Minas Gerais SA and RR Participações SA.