Brazil’s Light agrees to sell 17.17% stake in Renova Energia

Industry:    2019-10-15

Brazilian energy company Light SA said on Monday its subsidiary Light Energia S.A. has agreed to sell a 17.17% stake in Renova Energia SA to CG I Fundo de Investimento em Participacoes Multiestrategia for a symbolic value of 1 real ($0.2435).

In a securities filing, the company added that, after concluding the transaction, CG I has committed to then sell Renova shares to Cia Energetica de Minas Gerais, if the latter decides to exercise its preemptive rights.

Cemig, as Brazil’s second-largest utility is known, is a shareholder in both Light and Renova.

Rio de Janeiro-based distributor Light said the sale of its stake in Renova is part of a strategy to divest non-core assets and focus on improving the performance in operations involving energy distribution.

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