Triunfo to Shed Energy Stakes to CTG

Brazil's Triunfo Participacoes e Investimentos SA announced on Tuesday it was selling controlling stakes in three different energy businesses to the local subsidiary of China Three Gorges Corp for up to 1.9 billion reais ($538 million).

The Brazilian infrastructure company said in a statement it will sell all the shares it owns at Rio Verde Energia, Rio Canoas Energia, and Triunfo Negocios de Energia for about 970 million reais plus 770 million reais in debt. An additional 148.5 million reais may be paid pending further examination, the company said.

The deal, which is subject to approval by Brazilian and Chinese authorities, will give CTG Brasil control over two hydroelectric dams in Brazil's central and southern regions, as well as an energy trading company.

Triunfo said in a statement it will use the sale proceeds to strengthen its capital structure.

Reporting by Walter Brandimarte