Funds managed by global investor in sustainable infrastructure Actis have acquired Enel SpA’s approximately 87% stake in Enel Generación Perú SAA and 100% stake in Compania Energetica Veracruz SAC for a total US$1.3bn.
The transaction is valued at a US$2.1bn enterprise value on a 100% basis.
The deal marks Actis’ tenth platform investment from Energy 5, its flagship energy fund which represents US$6bn of investable capital.
With the acquisition of Enel Generación Perú, Actis has gained access to a 2.2GW diversified energy generation portfolio in Peru with 12 operating assets and one more under construction.
The portfolio includes a market-leading renewables footprint comprising wind and solar assets as well as hydro and thermal assets.
Actis plans to scale the platform and accelerate its renewables growth to capture market opportunities with end users that are drawn to affordable, reliable and clean power, thanks to the largest wind and solar pipeline in Peru, said the investor.
The country has a resilient energy sector, with strong market fundamentals and a proven, liberalised market where energy demand experienced a 4.7% compound annual growth rate from 2010 to 2022, it added.
“Actis has a long history of investing in Latin American energy generation, transmission, and distribution,” said partner, energy infrastructure, at Actis Nicolas Escallon.
“Having backed 14 companies in the power space in the region, we have been the largest owner and operator of wind and solar power generation in Latin America.
“This acquisition is a key addition to our energy portfolio and represents another important investment in the region for our flagship Energy 5 Fund.
“It follows our proven strategy of investing behind world class management teams to build and grow high quality power generation businesses in growth markets.”
Partner, energy infrastructure, at Actis Alberto Estefan added: “This diversified platform, which includes baseload natural gas as well as hydro and renewable assets, offers an attractive value proposition to the system and end users.
“It is also ideally positioned for continued growth. We’re acquiring the largest renewable portfolio in Peru and a large development pipeline, which allows us to play a significant role in the country’s decarbonisation.
“As ever, Actis wants to lead from the front on the energy transition and we believe it is key to driving value.”
Actis has also acquired additional shares in Enel Generación Perú from minority investors within the framework of a full takeover bid in the Lima Stock Exchange.
The acquisition strengthens Actis’ energy portfolio in Latin America and follows the Actis Energy 5 Fund investments in Serena Energy and Valia Energia in the region, it said.