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Abengoa enters transmission JV in Brazil

Abengoa has entered a joint venture (JV) agreement with Brazilian electricity company Compania Energetica de Minas Gerais (CEMIG) combining four transmission concessions.

By Renewable Energy Focus staff

The transmission concessions currently belong to Abengoa. CEMIG will take a 50% stake in STE, ATE, ATE II and ATE III. Furthermore, the Brazilian company will buy Abengoa’s concession company NTE.

Manuel Sanchez Ortega, Abengoa’s CEO, says: “This transaction represents a very important milestone for the company: It strengthens our commitment to the Brazilian transmission market and our commitment to the country, introducing a key partner such as CEMIG into our growth strategy.

“Furthermore, financially, this transaction strengthens our balance sheets thanks to the significant reduction in net debt, which will enable us to continue developing our business model with a more solid capital structure. This is consistent with our selective asset rotation strategy that we have explained to the markets in recent months.”

The net gain for Abengoa from the transaction will be €27-30 million.

Abengoa also recently announced it is selling its 40% stake in Telvent to Schneider Electric.

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