COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

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

MATERIAL ANNOUNCEMENT Updating of Cemig's Disinvestment Program

In sequence from its Material Announcement published on June 1, 2017, Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in accordance with CVM Instruction 358 of January 3, 2002, as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Cemig has today updated the Disinvestment Program which it announced at its 21st Meeting with the Capital Markets on June 1, 2017.

This table summarizes the updated program, representing a total1 of R$ 8.046 billion:

Company

Criterion

%

stake

Book value 1

R$ mn

Status

19%

1,384 2

Selection of broker and negotiation of equity interests

25

77

Awaiting approval by Taesa

18%

1,278

Negotiation of sale agreement

-

317

Non-binding proposal (primary capitalization)

43%

2,060 3

Contracting of advisors

Cachoeirão, Pipoca, Paracambi

49%

127

Negotiation of equity interests

49% ON

100% PN

1,202

Preparation of tender

100%

193

Preparation of tender

12%

1,392

Contracting of advisors

Gas exploration

concessions

24.5%

16

Preparation of tender

  1. Amounts reported in the Company's accounting, with the exception of: Taesa, Transmineira, and Light. These do not represent a guarantee or expectation of the real sale value of the assets.

  2. Market value (BM&F Bovespa) on July 6, 2017: R$ 21.70/unit.

  3. Market value (BM&F Bovespa) on July 6, 2017: R$ 23.28.

Cemig will keep its stockholders and the market opportunely and appropriately informed on the progress of this program.

Belo Horizonte, July 7, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025

Page 1 of 1 This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.

CEMIG - Companhia Energética de Minas Gerais published this content on 07 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 July 2017 14:19:09 UTC.