InterGen said Dec. 22 that it agreed to sell its business interests in Mexico for $1.256 billion to Actis. The sale is expected to close in Q2. InterGen’s Mexico portfolio includes 2,200 megawatts in operation with six combined-cycle gas turbine projects and a 155 megawatt wind project with partner IEnova. Ontario Teachers’ Pension Plan and China Huaneng Group/Guangdong Yudean Group jointly own InterGen. BofA Merrill Lynch and Barclays Capital provided financial advice to InterGen and Scotia Capital acted as financial adviser to Actis in the transaction.
BURLINGTON, Mass.–(BUSINESS WIRE)–InterGen announced today that it has entered into an agreement with Actis to sell its business interests in Mexico for an enterprise value of US$1.256 billion. The sale is expected to close in the second quarter of 2018 and is subject to regulatory approvals.
InterGen’s Mexico portfolio includes 2,200 megawatts in operation with six combined-cycle gas turbine projects and a 155 megawatt wind project with partner IEnova. InterGen also owns and operates three gas compression stations and one 65-km gas pipeline in Mexico.
For more than 20 years, InterGen has been a leading investor and operator in Mexico helping to meet the growing energy needs in the country through the cleanest and most advanced technology and processes.
“We are pleased to have reached this agreement with Actis, a recognized investor in the energy and infrastructure space in Latin America, including Mexico,” said Tim Menzie, InterGen chief executive officer. “While we are committed to growing our portfolio over the long term, this transaction represents a significant opportunity to realize value from our investment in the region.”
Commenting on the investment, Michael Harrington, partner in the energy business at growth markets investor Actis, said, “This is a landmark transaction that further cements our commitment to the compelling opportunity we see in Latin America and Mexico in particular. We are delighted to invest behind the successful business that InterGen has created and continuing to build it into a leading platform in the region. This is an important building block that underpins Actis’ focused strategy of creating scalable energy businesses in key growth markets.”
BofA Merrill Lynch and Barclays Capital acted as exclusive financial advisors to InterGen and Scotia Capital acted as exclusive financial advisor to Actis in the transaction.
InterGen is a global power generation firm with 11 power plants in operation, representing a total generation capacity of 6,824 megawatts (5,180 net equity MW) and including a wind project. In addition, InterGen operates three gas compression facilities and a 65-km gas pipeline. These facilities are located in the United Kingdom, Mexico and Australia. InterGen is jointly owned by the Ontario Teachers’ Pension Plan and China Huaneng Group/Guangdong Yudean Group. For more information, visit www.InterGen.com.
Actis is a leading investor in growth markets, delivering consistent competitive returns, responsibly. It has a growing portfolio of investments across Asia, Africa and Latin America and has raised over US$12bn since inception.
The firm invests through insights gained from trusted relationships and local knowledge, deep sector expertise and an unparalleled heritage, set within a culture of active ownership. Applying developed market disciplines to growth markets, an established team of c. 100 investment professionals in ten countries identify investment opportunities in response to two trends: rising domestic consumption and the need for sustained investment in infrastructure across private equity, energy and real estate asset classes.
Actis is a signatory to the United Nations backed Principles for Responsible Investment (UNPRI), an investor initiative developed by the UNEP FI and the UN Global Compact. Actis targets consistent superior returns across asset classes over the long term, bringing financial and social benefits to investors, consumers and communities. It calls this the positive power of capital. www.act.is.