Brazil-based infrastructure firm Triunfo Participacoes e Investimentos will be selling its controlling stakes for three energy businesses to the local subsidiary of China Three Gorges for up to R$1.9bn ($538m).
The projects under consideration are Rio Verde Energia, Rio Canoas Energia, and Triunfo Negocios de Energia.
China Three Gorges Brasil Energia will be paying R$970m ($267.6m) for the two hydro power generating entities, Rio Verde Energia and Rio Canoas Energia, which are located in central and southern parts of the country and have assets totalling a 308MW capacity.
Triunfo Negocios de Energia, which is also a part of the deal, is involved in the purchase, import, export, and sale of electricity in the country. The energy trading entity was founded in 2011.
The remaining R$770m will be considered in debts, along with a potential payment of R$148.5m to be forwarded, following verification of specific issues.
Cost of the transaction is subject to further adjustments, Triunfo said.
The deal will be finalised after gaining approval from Brazil’s Administrative Council for Economic Defense (CADE), Brazilian power regulator Aneel, and the Chinese authorities.
Capital raised through this divestment of power assets will be used by Triunfo to leverage and strengthen its financial liquidity.