By Leticia Fucucuma and Luciana Magalhaes
Sao Paulo (Reuters) – The Brazilian mines giant Vale is in advanced talks to sell a majority participation in a renewable energy unit and a solar factory in the US investment company Global Infrastructure Partners (GIP), said two people familiar with the case.
The agreement for 70% of the Alianca Energia of Vale and the solar factory had also aroused the interest of the energy generators casa dos Ventos and China Three Gorges (CTG) Brasil, which are no longer in the running, have indicated sources.
Vale has chosen to continue negotiations exclusively with GIP, but a final contract was not signed, added sources.
Vale declared in a press release that he was looking for potential partners for Alianca, but no final decision has been made and that no binding agreement has been signed.
GIP refused to comment.
One of the sources said that GIP could pay some 5 billion reais ($ 870 million to $ 1.04 billion) for 70% Alianca and the solar factory. Alianca manages a portfolio of hydroelectric and wind farms, with a total installed capacity of almost 1,300 megawatts.
The Brazilian news website, Faria Lima Journal, reported on Thursday that talks between Vale and GIP were advancing.
Vale became an Alianca sole owner last year, when she paid 2.7 billion Reais ($ 470 million) for the participation of 45% owned by the CEMIG firm CEMIM, with whom he launched the company in 2013.
(1 $ = 5.77 reais)
(Report by Leticia Fucuchima and Luciana Magalhaes; edition by Brad Haynes and Alistair Bell)
