(In 7th paragraph, corrects stake Brookfield agreed to acquire
in TerraForm Global to 100 percent, not 51 percent)
By Luciano Costa
SAO PAULO May 12 Canada's Brookfield Asset
Management Inc has agreed to buy Light SA's
stake in Brazilian renewable energy company Renova Energia SA
and eventually become controlling shareholder, one
source with direct knowledge of the talks said on Friday.
Brookfield will first acquire a 20.3 percent stake owned by
Light in Renova, worth about 200 million reais ($64 million) at
current market prices. The source did not disclose the amount
Brookfield will pay Light for the stake.
A second step to become controlling shareholder will involve
a capital injection of 800 million reais, diluting current
controlling shareholder Centrais Elétricas de Minas Gerais SA
, the source said on condition of anonymity because
discussions are private.
Cemig, owned by the cash-strapped state of Minas Gerais,
holds 44 percent of Renova. Brookfield will have management
rights in Renova and the terms of the deal are ready for
approval in Cemig's board meeting next week, the source added.
Brookfield, Renova, Cemig and Light did not immediately
comment on the matter.
Brookfield also agreed to pay an additional $120 million to
Renova for stock in U.S. renewable energy company TerraForm
Global Inc, according to the source.
In March, the Canadian asset manager agreed to acquire 100
percent of TerraForm Global for $787 million in cash.
($1 = 3.12 reais)
(Writing by Tatiana Bautzer; Editing by David Gregorio and