The transaction is a part of an agreement signed in December 2013 with Cemig GT. It also forms part of Vale’s efforts to boost shareholders’ value as it reduces capital expenditures requirements on non-core assets and improve flexibility for managing these assets in the future.
Upon securing necessary approvals, 9% stake has been transferred by Vale in Norte Energia, which is responsible for the construction, operation and exploration of UHE Belo Monte project, to its subsidiary Aliança Norte Energia Participações.
Subsequently, Cemig GT purchased 49% interest in Aliança Norte which corresponds to an indirect participation of 4.41% in Norte Energia.
Vale now holds 4.59% stake in Norte Energia and has rights to acquire 9% of the energy generated by the hydroelectric power plant, as part of a long-term contract signed in 2012.
Vale and Cemig GT earlier launched a joint venture Aliança Geração de Energia in February 2015 through the incorporation of energy generation assets into the new company.
