COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG LISTED COMPANY - CNPJ 17.155.730/0001-64 - NIRE 31300040127
MATERIAL ANNOUNCEMENT
Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in compliance with CVM Instruction 358 of January 3, 2002, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&FBovespa S.A.) and the market in general as follows:
On February 2, 2016 Cemig's affiliated company Renova Energia S.A. ('Renova') published a Material Announcement with the following content:
Renova Energia S.A. (RNEW11) ('the Company'), in accordance with CVM Instruction 358/2002, as amended, hereby informs its stockholders and the market that the meeting of the Board of Directors of Renova held today approved an increase in the Company's capital of up to R$ 731,247,640.38 (seven hundred thirty one million two hundred forty seven thousand six hundred forty Reais and thirty eight centavos), by issue of a total of up to 81,587,997 new common shares and up to 28,208,946 new preferred shares, all nominal, book-entry shares without par value, at issue price of R$ 6.66 per common share and preferred share, and R$ 19.98 per Unit ('the Capital Increase').
The Capital Increase will be within the limit of the authorized capital, all new shares being identical to the respective existing common and preferred shares, and take place through private subscription, with present stockholders having preference to participate in proportion to their current stockholdings.
Each common or preferred share, and each Unit, shall carry the right of preference to subscribe, respectively, 0.344436239 of a new share or Unit.
A Notice to Stockholders will contain all the information about the Capital Increase and the right of preference.
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The Capital Increase is one of the actions for implantation of Renova's business plan, following cancellation of Phase II of the transaction with TerraForm Global. The new business plan will re-scale future investments, adapting them to present market conditions, which include less attractive conditions of liquidity and availability of credit.
Renova continues to work on several fronts to execute this plan. So far it has announced an important change in the Executive Board, renegotiations of debt, bringing forward of funds under energy supply contracts, and adaptation of personnel - in decisions to achieve a lighter, more efficient and more flexible structure.
The Capital Increase will strengthen Renova's cash position, providing funding for projects currently under construction and others under development, and payment of expenses and debt of the holding company.
Renova will keep stockholders and the market informed about the Capital Increase and other material information. "
Of this amount:
R$ 85 million will be subscribed and paid on February 3, 2016;
R$ 115.0 million will be subscribed and paid in March 2016; and
up to R$ 40.0 million will be subscribed and paid in the phase, if any, for subscription of shares not otherwise subscribed and paid up.
Cemig will keep its stockholders and the market opportunely and appropriately informed on the conclusion of this transaction.
s
Belo Horizonte, February 2, 2016 Fabiano Maia Pereira
Chief Finance and Investor Relations Officer
CEMIG - Companhia Energética de Minas Gerais issued this content on 02 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 February 2016 12:20:29 UTC
