Cemig Buys Abengoa out of JV

Companhia Energetica de Minas Gerais (Cemig) has agreed to buy the remaining 50% of the Companhia Transmissora Alianca de Energia Electrica (Taesa) JV from Spain’s Abengoa for BRL863.5m ($480m), the companies say. The deal follows last year’s sale of the initial 50% for EUR485m ($695m) in cash. The price is adjustable by inflation through the date of closing of the deal, which is subject to regulatory approval. The joint venture holds the STE, ATE, ATEII and ATE III transmission concessions, which cover 2,138 km and have been in operation for an average of 5 years. The companies do not disclose any advisors. Cemig is heard planning an equity sale for its Taesa, to be led by BTG Pactual and Bank of America Merrill Lynch.