Brookfield Infrastructure announced this week that it has come to an agreement to sell its 28 percent minority stake in ETC Transmission Holdings to China Southern Power Grid International for approximately US$1.3 billion. The deal is expected to close in the first half of 2018. Santander GCB and Scotiabank are serving as financial advisers to Brookfield Infrastructure while Goodmans LLP is providing legal advice. ETC Transmission Holdings is the parent company of Transelec, a Chilean power transmission company.
Brookfield Infrastructure Announces Agreement to Sell Chilean Regulated Transmission Business for $1.3 Billion
BROOKFIELD, NEWS, Dec. 26, 2017 (GLOBE NEWSWIRE) — Brookfield Infrastructure (NYSE:BIP) (TSX:BIP.UN) today announced that it has signed definitive agreements to sell its approximate 27.8% interest in ETC Transmission Holdings, S.L., the parent company of Transelec S.A. (“Transelec”), to China Southern Power Grid International (HK) Co., Ltd. for US$1.3 billion.
“Over the past year we have been focused on executing the next phase of our capital recycling program, seeking to dispose of mature infrastructure assets and to redeploy the proceeds in higher-returning opportunities,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “Proceeds from the sale of Transelec will be used to fund our growing backlog of organic growth projects, as well as our robust pipeline of transactions.”
Transelec is the largest pure-play power transmission company in Chile, with over 10,000 kilometers of electricity lines serving approximately 98% of the Chilean population.
Closing of the transaction is subject to customary closing conditions, certain third-party consents and applicable regulatory approvals from relevant authorities in China and is targeted to occur in the first half of 2018.
Santander GCB and Scotiabank are acting as financial advisors to Brookfield Infrastructure and Goodmans LLP is acting as legal advisor.
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, energy and communications infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfield.com/infrastructure. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with approximately $265 billion of assets under management. For more information, go to www.brookfield.com.
For more information, please contact:
Vice President, Communications
Tel: (416) 369-8236
Senior Vice President, Corporate Development
Tel: (416) 956-5196