Mubadala close to deal for Brazilian energy firm - report

According to a Brazilian newspaper, the deal would be worth about $1.2 billion
Mubadala close to deal for Brazilian energy firm - report
By Bernd Debusmann Jr
Wed 21 Mar 2018 11:05 AM

Mubadala Development Fund, the UAE’s sovereign wealth fund, is close to finalising a deal to buy Queiroz Galvao Energia SA (QGE), the renewable energy wing of Brazil’s Queiroz Galvao Participacaoes, according to Brazilian media reports.

Brazilian business newspaper Valor Economico, citing a sources close to the deal, said it would be worth approximately $1.2 billion (AED 4.41 billion). The deal reportedly includes QGE’s debts.

The newspaper added that Mubadala is partnering with Castlerock Asset Management Inc. for the deal.

Additionally, Valor Economico reported that the debt-heavy conglomerate had been involved in talks with other entities – including China Three Gorges Corp. – that were unsuccessful.

According to the newspaper, QGE has 532 MW of wind farms in the Brazilian states of Ceara, Piaui and Rio Grande Do Norte, an 178 MW facility in Piaui, and 300 MW hydropower capacity at three locations.

Earlier in March, Bloomberg reported that Goldman Sachs Group is arranging for financing for Mubabala Development and EIG Global Energy Partners ahead of a bid for Petroleo Brasileiro’s natural gas pipeline network in Brazil.

Citing three people with knowledge of the matter, the report noted that the offer may go as high as $8 billion for the enterprise value.

In 2016, Mubadala opened an office in Rio de Janeiro to manage and grow its Brazilian assets, following the restructuring of a $2 billion investment in the collapsed EBX Group controlled by former billionaire Eike Batista.

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