Canada’s Brookfield Renewable Energy is to acquire a majority stake in Isagen of Colombia, which owns and operates 3GW of renewables mostly in the hydroelectric sector and has a further 3.8GW in development.
The company said it has committed to acquire 57.6% of the outstanding common shares in Isagen from the Colombian government and will lead a consortium of institutional partners to buy 1.57 billion for around $2.2bn, payable in cash on 26 January.
This works out at $1.38 per share.
Brookfield’s equity commitment will be around $243m giving it an approximate 9% interest in Isagen.
The consortium has to conduct two tender offers for the remaining shares.
The company said that assuming the remaining shares are sold to the Brookfield consortium in accordance with these tender offers, its additional equity commitment would be for around $517m, which it would fund with a committed $500m acquisition facility and existing liquidity, giving it an approximate 25% interest in Isagen.
Brookfield Renewable chief executive Sachin Shah said: “We are extremely pleased to grow our business in Colombia, an attractive market with strong long-term growth fundamentals, a highly skilled labor force and continued need for new investment.
“This transaction aligns with our objective of building our global renewable energy business with high quality, predominantly hydro assets.”
Image: Hydro project (Brookfield)
