Renova OKs $1.5bn capital increase

The board of directors of Brazilian independent renewables company Renova Energia have approved a R$3.54bn (US$1.51bn) capital increase.

The proceeds will be used to pay for the acquisition of control of Brasil PCH, and make cash available for current and future investments

This will raise Renova’s total capital to R$4.56bn from R$1.02bn.

State power company Cemig will acquire R$1.55bn of the capital increase. This will raise its direct stake in the company and give it a position in the firm's controlling block.

Non-voting stock was priced at R$17.78.