Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  AES Corporation    AES

AES CORPORATION (AES)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Exclusive - Oaktree enters race for Brazil's Renova, sources say

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/05/2017 | 07:34pm CET

SAO PAULO (Reuters) - Oaktree Capital Management LP has entered the race to buy control of Renova Energia SA (>> Renova Energia SA) with a proposal that would inject fresh capital and help refinance part of the Brazilian renewable energy firm's debt maturing this year, two people with direct knowledge of the plan said on Wednesday.

SAO PAULO (Reuters) - Oaktree Capital Management LP has entered the race to buy control of Renova Energia SA (>> Renova Energia SA) with a proposal that would inject fresh capital and help refinance part of the Brazilian renewable energy firm's debt maturing this year, two people with direct knowledge of the plan said on Wednesday.

The people said Oaktree would pay 170 million reais (39.47 million pounds) for Light SA's 16 percent stake in Renova and spend another 1.2 billion reais to dilute Renova's controlling bloc. It also involves the refinancing of Renova bank loans maturing this year, freeing up collateral, the people said. Los Angeles-based Oaktree [OAKCP.UL], the world's biggest distressed debt investor, is competing with Brookfield Asset Management Inc (>> Brookfield Asset Management Inc) for Renova. Late on Tuesday, Renova confirmed a July 3 report by Reuters that Brookfield has made a non-binding proposal for control of the company. Under the terms of that proposal, Light would get 200 million reais for the stake it has in Renova, which would also get 800 million reais in fresh capital.

Newfound interest in Renova underscores a view among foreign investors that Brazil's renewable power industry remains resilient even as consumption suffers with the country's worst recession ever. Peer Omega Geração SA could raise up to 2 billion reais in an initial public offering slated to price this month.

Renova and Oaktree, which oversees about $100 billion in assets, did not have an immediate comment. Light declined to comment.

Units of Renova (>> Renova Energia SA), a blend of Renova's common and preferred shares, have jumped almost 30 percent since January 2 when Reuters first reported that the company could be taken over. That compares with a 4.5 percent gain in Brazil's benchmark Bovespa stock index <.BVSP>.

According to one of the people, who requested anonymity to discuss the matter, both non-binding bids from Brookfield and Oaktree would give equal treatment to minority shareholders. The so-called tag along will be based on the proportion of common and preferred shares contained in Renova's units - the company's most widely traded class of stock, the person said.

Renova has struggled with a severe cash crunch over the past couple of years. By injecting capital, a new buyer would give Light (>> Light SA) the chance to exit Renova and reduce the stakes held by the other two members of Renova's controlling bloc - CiaEnergética de Minas Gerais SA (>> Cia Energetica de Minas Gerais CEMIG) and RR Participações SA. Cemig and RR Participações declined to comment.

A transaction with Oaktree could reduce Renova's short-term debt by 6 percent while bolstering capital at least 13 percent, depending on the conclusion of the Alto Sertão III windfarm project, the same person said. Oaktree could opt to refinance Renova's short-term debt or just a loan with state-controlled Banco do Brasil SA, the person said.

Financing conditions for Renova, which was founded in 2001, worsened significantly when a partnership with SunEdison Inc (>> Sunedison Inc) collapsed weeks before the latter filed for Chapter11 bankruptcy protection in the United States.

Reuters first reported in April last year that Renova has been looking for a partner and fresh capital.

(Reporting by Guillermo Parra-Bernal; editing by Diane Craft)

By Guillermo Parra-Bernal

Stocks mentioned in the article
ChangeLast1st jan.
BROOKFIELD ASSET MANAGEMENT INC 0.14% 51.19 End-of-day quote.-6.07%
COMPANHIA ENERGETICA DE MINAS GERAIS 0.00% 8.25 End-of-day quote.17.18%
IBOVESPA 0.70% 87293.2405 Delayed Quote.12.63%
LIGHT SA 1.48% 15.72 End-of-day quote.-5.93%
OAKTREE CAPITAL GROUP LLC -0.12% 42.1 Delayed Quote.0.12%
RENOVA ENERGIA SA 0.00% 5.66 End-of-day quote.-8.09%
SUNEDISON INC --End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AES CORPORATION
02/22AES : Distributed Energy and KIUC Break Ground on Largest Hybrid Solar and Energ..
BU
02/22AES CORP : annual earnings release
02/17AES : World`s Leading Commodity and Consulting Firms to Join Allegro for Global ..
AQ
02/16AES : World's Leading Commodity and Consulting Firms to Join Allegro for Global ..
AQ
02/14AES : In Trump’s first year, U.S. agency doubles solar investments abroad
RE
02/14AES : In Trump's first year, U.S. agency doubles solar investments abroad
RE
02/14AES : In Trump's first year, U.S. agency doubles solar investments abroad
RE
02/14RIMS Awards the Risk Manager of the Year Honor to Children's National Medical..
AQ
02/07AES : Announces Next Steps in Its Strategic Transformation
AQ
02/07AES : $0.32 EPS Expected for The AES Corporation (AES)
AQ
More news
News from SeekingAlpha
02/19Solar PV Plus Batteries A Game Changer In The Switch To Renewable Energy? 
02/08AES Corp. eyes layoffs as part of wider restructuring effort 
02/01GREEN DOT PORTFOLIO : January 2018 Update 
02/01PG&E pulls back as no determination made on cause of wine country fires 
02/01YOUR DAILY PHARMA SCOOP : Achaogen Update, Seattle Genetics Acquires Cascadian, .. 
Financials ($)
Sales 2017 13 910 M
EBIT 2017 2 318 M
Net income 2017 469 M
Debt 2017 20 382 M
Yield 2017 4,59%
P/E ratio 2017 11,63
P/E ratio 2018 14,41
EV / Sales 2017 1,95x
EV / Sales 2018 1,91x
Capitalization 6 756 M
Chart AES CORPORATION
Duration : Period :
AES Corporation Technical Analysis Chart | AES | US00130H1059 | 4-Traders
Technical analysis trends AES CORPORATION
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 12,5 $
Spread / Average Target 22%
EPS Revisions
Managers
NameTitle
Andrés Ricardo Gluski Weilert President, Chief Executive Officer & Director
Charles O. Rossotti Chairman
Bernerd Raymond da Santos Ávila Chief Operating Officer & Senior Vice President
Thomas M. O'Flynn Chief Financial Officer & Executive Vice President
John B. Morse Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AES CORPORATION-4.89%6 756
DUKE ENERGY CORP-10.19%52 727
DOMINION ENERGY-9.23%47 325
IBERDROLA-5.51%46 890
SOUTHERN COMPANY-10.54%43 076
EXELON CORPORATION-5.51%35 609