May 12, 2017 / 8:55 PM / a year ago

CORRECTED-UPDATE 1-Canada's Brookfield to take control of Brazil's Renova

(In 7th paragraph, corrects stake Brookfield agreed to acquire in TerraForm Global to 100 percent, not 51 percent)

By Luciano Costa

SAO PAULO, May 12 (Reuters) - Canada’s Brookfield Asset Management Inc has agreed to buy Light SA’s stake in Brazilian renewable energy company Renova Energia SA and eventually become controlling shareholder, one source with direct knowledge of the talks said on Friday.

Brookfield will first acquire a 20.3 percent stake owned by Light in Renova, worth about 200 million reais ($64 million) at current market prices. The source did not disclose the amount Brookfield will pay Light for the stake.

A second step to become controlling shareholder will involve a capital injection of 800 million reais, diluting current controlling shareholder Centrais Elétricas de Minas Gerais SA , the source said on condition of anonymity because discussions are private.

Cemig, owned by the cash-strapped state of Minas Gerais, holds 44 percent of Renova. Brookfield will have management rights in Renova and the terms of the deal are ready for approval in Cemig’s board meeting next week, the source added.

Brookfield, Renova, Cemig and Light did not immediately comment on the matter.

Brookfield also agreed to pay an additional $120 million to Renova for stock in U.S. renewable energy company TerraForm Global Inc, according to the source.

In March, the Canadian asset manager agreed to acquire 100 percent of TerraForm Global for $787 million in cash.

$1 = 3.12 reais Writing by Tatiana Bautzer; Editing by David Gregorio and Richard Chang

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