COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

LISTED COMPANY - CNPJ 17.155.730/0001-64 - NIRE 31300040127

MATERIAL ANNOUNCEMENT Taesa: Purchase Agreement of shares held by FIP Coliseu

In accordance with CVM Instruction 358 of January 3, 2002, as amended, Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&FBovespa S.A.) and the market in general, as follows:

On December 27, 2016, Transmissora Aliança de Energia Elétrica S.A. ("Company", "Taesa") filed the following Material Announcement:

"Transmissora Aliança de Energia Elétrica S.A. ("Company", "TAESA"), in accordance with Article 157, Paragraph Four, of Law No. 6,404/76 and CVM Resolution No. 358/02, hereby informs to its shareholders and the market in general that, on the date hereof, it received the attached notice sent by Fundo de Investimento em Participações Coliseu and Fundo de Investimento em Ações Taurus (jointly, "Sellers"), informing that, on December 27th, 2016, a Share Purchase Agreement was executed with Interconexión Eléctrica S.A. E.S.P. ("Agreement" and "Buyer", respectively) for the sale of the totality of their equity interests bound to the block of control of TAESA, representing, jointly, 26.03% of the common shares and 14.88% of the total capital stock of TAESA, for the total amount of R$1,055,932,217.19.

Pursuant to the Agreement, the completion of the Transaction is subject to the terms and conditions usually adopted in this kind of transaction, including, among others, the obtaining of governmental authorities' approvals, such as the Administrative Council for Economic Defense (Conselho Administrativo de Defesa da Concorrência - CADE) and the National Electric Energy Agency (Agência Nacional de Energia Elétrica - ANEEL).

Upon completion of the transaction, the equity interest of 41.6% in the block of control of TAESA, which is currently held by the Sellers, will be held by the Buyer, who will adhere to the Shareholders' Agreement of TAESA, with the same rights and obligations currently attributed to the Sellers.

Rio de Janeiro, December 27, 2016.

Marcus Pereira Aucélio

Chief Financial and Investor Relations Officer

TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA S.A. Annex Notice of the Sellers received by the Company on the date hereof

"Rio de Janeiro, December 27, 2016

To

TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA S.A.

Praça XV de Novembro, No. 20, 6º floor, rooms 601 and 602 20010-010 - Rio de Janeiro - RJ

Att.: Mr. Marcus Pereira Aucélio Investor Relations Executive Officer

Ref.: Sale of shares issued by TAESA held by FIP Coliseu and FIA Taurus

Dear Sirs,

FUNDO DE INVESTIMENTO EM PARTICIPAÇÕES COLISEU, a Brazilian investment fund (fundo de investimento em participações), duly organized in accordance with the Resolution No. 578/16, issued by the Brazilian Securities Commission (Comissão de Valores Mobiliários - "CVM"), enrolled with the National Register of Legal Entities ("CNPJ/MF") under No. 09.619.403/0001-98, with head offices in the City and State of Rio de Janeiro, at Praia de Botafogo, No. 501, 5th floor - part, block 1 ("FIP Coliseu"), herein duly represented by its managing institution Banco Modal S.A., a financial institution with head offices in the City and State of Rio de Janeiro, at Praia de Botafogo, No. 501, 5th floor - part, block 1, enrolled with the CNPJ/MF under No. 30.723.886/001-62, herein duly represented pursuant to its By-Laws ("Banco Modal" or "Managing Institution"); and FUNDO DE INVESTIMENTO EM AÇÕES TAURUS, a Brazilian investment fund (fundo de investimento em participações), duly organized in accordance with CVM Resolution No. 555/14, enrolled with the CNPJ/MF under No. 22.590.150/0001-35, with head offices in the City and State of Rio de Janeiro, at Praia de Botafogo, No. 501, 5th floor - part, block 1, Botafogo ("FIA Taurus" and, jointly with FIP Coliseu, "Sellers"), herein duly represented by its managing institution Banco Modal, in their capacity as shareholders of TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA S.A., a publicly-held company, with head offices in the City and State of Rio de Janeiro, at Praça XV de Novembro, No. 20, 6th floor, rooms 601 and 602, enrolled with the CNPJ/MF under No. 07.859.971/0001-30 ("Company" or "TAESA"), hereby inform you the following for the adoption of the proper measures.

On the date hereof, the Sellers executed with INTERCONEXIÓN ELÉCTRICA S.A. E.S.P., a company duly organized and existing in accordance with the laws of Colombia, with head offices in the City of Medellín, at Calle 12 Sur #18-168 ("Buyer" and, jointly with the Sellers, "Parties"), a Share Purchase Agreement ("Agreement"), by which the Sellers agreed to sell the totality of the shares issued by the Company held by them to the Buyer, bound to the Shareholders' Agreement of TAESA, representing twenty-six point three per cent (26.03%) of the common shares and fourteen point eighty-eight per cent (14.88%) of the total capital

stock of TAESA, for the total amount of one billion, fifty-five million, nine hundred and thirty-two thousand, two hundred and seventeen reais and nineteen cents (R$1,055,932,217.19), subject to the adjustments and corrections established in the Agreement ("Transaction").

Pursuant to the Agreement, the completion of the Transaction is subject to the terms and conditions usually adopted in this kind of transaction, including, among others, the obtaining of governmental authorities' approvals, such as the Administrative Council for Economic Defense (Conselho Administrativo de Defesa da Concorrência - CADE) and the National Electric Energy Agency (Agência Nacional de Energia Elétrica - ANEEL).

Upon completion of the Transaction, the equity interest of forty-one point six per cent (41.6%) in the block of control of TAESA, which is currently held by the Sellers, will be held by the Buyer, who will adhere to the Shareholders' Agreement of TAESA, with the same rights and obligations currently attributed to the Sellers.

We take this opportunity to express our votes of high esteem and consideration, and we remain at your entire disposal for any clarifications deemed necessary.

Sincerely yours,

[Original signed by Fundo de Investimento em Participações Coliseu and

Fundo de Investimento em Ações Taurus"

Belo Horizonte, December 28, 2016.

Franklin Moreira Gonçalves

Acting Chief Finance and Investor Relations Officer

CEMIG - Companhia Energética de Minas Gerais published this content on 28 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 December 2016 10:17:12 UTC.