Tomahawk, WI 01/30/2014 (BasicsMedia) – Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) has been on the hunt for deals that will push it forward and make it more attractive to investors. This Brazil-based holding company primarily operates and offers its services in the electricity sector. CIG is heavily involved in matters to do with electric power ranging from production, to transmission, transformation, commercialization, and distribution of the same. It operates outside sector, where takes part in purchasing, transporting, and distributing natural gas, and the telecommunications industry too.

In order to continue deriving as many benefits from its business operations as it possibly can, the company has signed an agreement with Vale SA. Cemig GT, which is CIG’s wholly owned subsidiary, signed the deal with Vale SA on behalf of the parent company. Consequently, this agreement will see a new entity birthed, which will be known as Alianca Geracao de Energia SA. Vale SA will have a 55 percent stake in the new entity, thereby, giving it a majority control over this new venture that it has formed with CIG in order to boost the two companies’ businesses.

The joint venture between CIG and Vale SA will see the two companies add the six hydroelectric power stations they own into the equation. The power plants in question include Porto Estrela, Funil, Igarapava, Aimores, Capim Branco 1 and 2, as well as Candonga. The total installed capacity in all the six hydroelectric power plants is 1,158 megawatts. Consequently, what this does is that it increases the ability of CIG to meet the electricity needs of its clients in Brazil and beyond. This new deal will help it to benefit from Vale SA’s connections and expertise as well.

This comes hot on the heels of an announcement made in 2013 that indicated CIG’s willingness to invest close to $621 million in Renova, which is a major Brazilian developer. One has to remember that CIG is Brazil’s second largest power utility firm. It is always on the lookout for opportunities and deals that will increase its revenues, and help it with its diversification goals. The $621 million it is willing to invest in Renova is designed to help CIG get a better exposure and understanding on everything to do with wind power, in Brazil and beyond.

Whereas the deal between CIG and Vale SA will help it to improve its capacity to deliver electricity using the hydroelectric systems, the investment in Renova indicates that the company is not satisfied with only a single area. CIG now joins other power utilities in Brazil that seem to focus more on harnessing wind power and using the same to help meet the electricity needs in this South American economic powerhouse. This way, CIG will never fail to provide electricity to its clients, during the months when hydro dams are low, but wind is in plenty.

As long as CIG continues making such strategic business decisions and agreements, the company’s stock will keep rising, which will portend great news to investors, and help it achieve its goals of maintaining high levels of growth throughout 2014.

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