Veil will discuss in advanced consultations to sell Brazilian renewable assets to GIP, sources say

Leticia Fucuchima and Luciana Magalhaes

Sao Paulo (Reuters) – Brazilian mining giant Verele has brought in high-level talks to sell a majority stake in renewable energy units and solar power plants to the US-based investment company Global Infrastructure Partner (GIP). I’m receiving it.

The 70% contract for both Vale’s Alianca Energia and Solar Plant also attracted interest from the energy generators Casa Dos Ventos and China Three Gorges (CTG) Brasil.

Vale has chosen to continue negotiations with GIP only, but no final agreement has been signed, the source added.

Vale said in a statement that he is looking for a potential partner for Alianca but has not reached a final decision and has not signed a binding agreement.

GIP declined to comment.

One source said GIP could pay around 5-6 billion Reais ($870 million to $1.04 billion) for 70% of Alianca and solar power plants. Ta. Alianca operates a portfolio of hydro and wind farms with a total capacity of approximately 1,300 megawatts.

The Faria Lima Journal, a Brazilian news website, first reported on Thursday that talks were underway between the Veil and GIP.

Vale last year became Alianca’s sole owner and paid 2.7 billion Reais ($470 million) for a 45% stake held by Power Firm Cemig, which launched its venture in 2013.

($1 = 5.77 Reais)

(Reporting by Leticia Fucuchima and Luciana Magalhaes, edited by Brad Haynes and Alistair Bell)