Vale to receive $1 billion in Alianca Energia JV deal

Vale became sole owner of Alianca last year, when it paid 2.7 billion reais for the 45% stake held by power firm Cemig, with whom it launched the venture in 2013.

Brazilian miner Vale (NYSE: VALE) said on Monday it agreed to form a joint venture with asset manager Global Infrastructure Partners (GIP) through its subsidiary, Brazilian energy firm Alianca Energia, according to a securities filing.

Vale said it would sell 70% of Alianca Energia to GIP, receiving about $1 billion in cash once the transaction is completed.

Reuters had reported in February, citing sources, that Vale was in advanced talks to sell a majority stake in Alianca Energia and a solar plant to GIP.

n the filing, Vale said that, after the deal, Alianca Energia will also consolidate Sol do Cerrado solar plant and 100% of hydro power plant Risoleta Neves, both located in the southeastern Minas Gerais state.

Vale became sole owner of Alianca last year, when it paid 2.7 billion reais for the 45% stake held by power firm Cemig, with whom it launched the venture in 2013.