By Leticia Fucuchima and Luciana Magalhaes
Sao Paulo (Reuters) – A Brazilian mining giant is in advanced negotiations to sell a majority share in a renewable energy unit and solar factory to the US investment company Global Infrastructure Partners (SIP), two people say familiar with the issue.
The deal for 70% of Alianca Energia by the Fale and the Solar Plant also attracted interest from the Brazilian Casa Dos and China Three Gorges (CTG) energy generators, which are no longer running, sources said.
Vale has chosen to continue discussions with a CIP alone, but a final contract has not been signed, sources have been added.
Vale said in a statement that he was looking for potential partners to Alianca, but no final decision was reached and no binding agreement has been signed.
He refused to comment.
One of the sources said CIP could pay about 5-6 billion reacts ($ 870 million to $ 1.04 billion) for 70% of alianca and the solar factory. Alianca runs a portfolio of hydroelectric power plants and wind farms, with the total installed capacity of nearly 1,300 megawatts.
The Brazilian news website Faria Lima Journal first reported that discussions between the Vale and CIP were moving forward.
Vale only became the owner of Alianca last year, when he paid 2.7 billion reaaism ($ 470 million) for the 45% share captured by the chemic power company, which he launched the initiative in 2013.
($ 1 = 5.77 Reais)
(Reported by Leticia Fucuchima and Luciana Magalhaes; Edited by Brad Haynes and Alistair Bell)