Brazil’s Renova to sell Alto Sertao II wind farm

Brazil’s renewable power generation company Renova Energia SA is in talks to sell its wind farm Alto Sertao II to the Brazilian unit of AES Corp, known as AES Brasil, for 600 million reais to 700 million reais ($214 million).

Units in Renova accelerated their rise after Reuters reported the deal. The unit, a blend of common and preferred shares, rose 22.5 percent to 7.35 reais in early Monday afternoon trading.

The Alto Sertao II wind farm has been in operation since 2014. Renova could also use part of the proceeds to finish construction of 400-megawatt wind farm Alto Sertao III, which is 90 percent built, said the person.

Renova and the Brazilian unit of AES Corp did not immediately respond to requests for comment.

Controlling shareholder Companhia Energetica de Minas Gerais SA has been trying to find ways to boost Renova’s capital since a failed deal late in 2015 with SunEdison Inc sharply reduced Renova’s expected cash position and compromised long-term investments.

Cemig, as the company is known, is looking to bring in a partner for Renova. The person expects that process to be concluded within the next three months.