Tribeca has sold its stake in Termocandelaria Power Limited (TPL) to a consortium of previous minority shareholders as well as institutional investors. No financial terms were disclosed. BNP Paribas and Banicol provided financial advice on the transaction. Based in Columbia, TPL is the owner of thermal power generation companies Termocandelaria and Termobarranquilla.
Bogota, May 15th 2015 -– Colombian private equity fund manager Tribeca has fully divested its participation in Termocandelaria Power Limited (TPL). Among other investments, TPL owns and indirectly controls 100% of the shares of Termocandelaria S.C.A. E.S.P., and owns and controls 57.38% of the shares of Termobarranquilla S.A. E.S.P. (TEBSA), both thermal power generation companies located in the Colombian Caribbean Coast, and representing together the fifth largest energy generator in Colombia in terms of installed capacity.
Tribeca originally invested in Termocandelaria in 2009 and in Termobarranquilla in 2010.As a result of an aggressive strategy of operational, efficiency and facilities improvement, the closing of the transaction resulted in a MOIC of 2.2x and an annual IRR of 17%.
With 60.75% of the shares of TPL, Tribeca indirectly controlled the largest thermal power generation portfolio in Colombia (1,232MW gross), which, as a result of this transaction, is taken over by a consortium consisting of existing minority shareholders of TPL in addition to institutional investors.
“This is our third successful exit this year and adds up to a total of USD$452 million returned to our investors since inception in 2007”, says Luc Gerard, founder and CEO, Tribeca.
For the period 2014-2015 Termocandelaria and Termobarranquilla combined represent 13% of the country’s total installed capacity (thermal plus water) and 27% of the thermal installed capacity. Termobarranquilla is the largest thermal power plant in Colombia and a key efficient source of energy for national and regional power supply, with a total installed capacity of 918MW. Termocandelaria is a power generation facility of 314MW comprised of two dual-fuel–natural gas and diesel–open-cycle gas turbines backing up national power supply in periodic extreme drought conditions.
After a value creation process, based on its vision of each sector and specific business conditions, once again Tribeca successfully concluded the sale of one of its portfolio companies, attracting foreign investment and contributing to economic growth in Colombia, as well as generating a significant return for its investors.
BNP Paribas and Banicol acted as financial advisors for the transaction.
Founded in 2006, Tribeca is a leading growth equity PE fund manager headquartered in Bogota with close to US$400 million in assets under management. It manages 12 portfolio companies in the infrastructure operations, healthcare, natural resources/energy, and consumer goods sectors, and has a regional investment approach through industry specific platforms. It is supported by leading institutional investors and continues to identify growth opportunities in Colombia and throughout Latin America. To date, Tribeca’s aggregate performance realized investment is 19% gross.