Brookfield abandons plan to buy controlling stake in Renova: Reuters

Brookfield Energia Renovável SA, a Brazil-based unit of Canada’s Brookfield Asset Management, abandoned a plan to make a capital injection of 1.4 billion reais in Brazil’s Renova Energia SA, which would give it a controlling stake in the company.

According to a Renova securities filing on Friday, Brookfield Energia Renovável SA changed its proposal and now is offering only to buy a large wind power complex and other power generation assets held by the Brazilian company.

Brookfield is offering 650 million reais (US$200.78 million) plus an earn-out value of 150 million reais to buy the Alto Sertão III wind power complex. It is also offering to buy other wind projects under development for 187,000 reais per megawatt of installed capacity.

Renova said it is evaluating the new proposal. It said eventual resources from the deal, if it is accepted, would be used to pay suppliers in the Alto Sertão III complex.

Renova had approved in November the initial proposal from Brookfield for the acquisition of a controlling stake in the Brazilian company, which is trying to cut a large debt load.

(Reporting by Marcelo Teixeira; Editing by Cynthia Osterman)

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