State Grid Corp, China Three Gorges Corp and Italy's Enel SpA
The two Chinese companies and the Italian utility are among a group of interested parties in the stake, which is owned by Brazilian power distribution company Light Energia SA
Light began looking for buyers for the Renova stake after SunEdison Inc
Renova's stake is the latest of a list of Brazilian renewable energy and electricity assets that have been put up for sale after years of rampant debt-taking and a two-year long recession hampered operations. Often seen as resilient during downturns, the industry is struggling with declining electricity consumption and the highest borrowing costs in nine years.
According to the third source, the stake sale may be accompanied by an issuance of new shares to boost capital. Other shareholders may join Light in exiting their stakes in Renova, the first source said. They could include BNDES Participações SA, the investment arm of state development bank BNDES that is commonly known as BNDESPar, both sources said.
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Three Gorges, Renova and Light did not have an immediate comment. BNDESPar did not comment. State Grid, Brookfield and TPG declined to comment. BNDESPar owns 9 percent of Renova.
Enel denied the information.
"At present, we are not focussed on this company, but we keep an eye on the evolution of the industry," said the Italian firm.
Chinese Investments
Shares of Renova gained 0.5% to 13.87 reais in late Friday trading in São Paulo. Light rose 1.5% to 10.46 reais.
In recent years, State Grid and other Chinese companies turned into aggressive buyers of Brazil energy assets. For instance, State Grid has spent $1 billion buying Brazilian assets, or 8 percent of the $12.2 billion worth of global acquisitions in the period, according to Thomson Reuters data.
Both Renova and Light are controlled by Cia Energetica de Minas Gerais SA
São Paulo-based investment-banking firm Grupo BTG Pactual SA