Brazil’s Cemig to sell stake in Vale’s power generation JV

Brazilian energy producer Cemig could sell a stake it has at Aliança Energia, a power generation joint-venture it has with Vale, according to a media report from Reuters.

 

Cemig could raise up to BRL 2 billion in the deal, the report said, citing people familiar with the matter.

 

According to the unnamed sources, Cemig could sell a 45 percent stake in the JV, while Vale could assume a controlling stake in the business. Itau should oversee the deal, the media report said.

 

As for Vale, remaining in the business and then assuming a controlling stake would help it avoid paying higher energy costs. Companies that generate energy and use it for production are exempt from certain taxes in Brazil, the media report said.