Ardian acquires Peruvian business of Latin America Power Holding

Latin America Power Holding is a private company incorporated under the laws of the Netherlands. The acquired company owns a fully operational portfolio of six run-of-river hydroelectric power plants with a total capacity of 73.4 MW. The plants have energy purchase and sale contracts awarded by the Peruvian Government that are denominated in US dollars and linked to inflation, with a remaining average life of approximately 10 years.

The acquisition includes 100% of Latin America Power Peru and its subsidiaries HSC Holding, Empresa de Generación Eléctrica Junín and LAP Servicios. The transaction involved the jurisdictions of Peru and the Netherlands.

“This transaction marks our first hydro investment for the fund. This hydro portfolio diversifies our technological mix by adding a strategic and complementary technology. We are also incorporating a highly capable management team on the ground that will strengthen Ardian’s industrial asset management expertise and support our long-term capital deployment strategy.” Benjamin Kennedy, Ardian’s managing director renewables infrastructure, said.

“This is our fourth direct renewable energy investment in Latin America, continuing our opportunistic approach in the region and complementing our overall renewables strategy. Considering our track record in Peru and the quality of the acquired portfolio, we are confident that we will continue to deliver strong risk-adjusted returns to our investors.” Emilio Andrade, Ardian’s director of infrastructure, said.

BTG Pactual Brazil Infrastructure Fund II, GMR Holding, Pátria Infrastructure Fund II, PI Fund II (Ontario), Limited PI Fund II (Ontario 2), Pátria Infrastructure Fund II LAP Co-Invest, and Patria Infrastructure II LAP Co-Invest UK acted as sellers.

Philippi Prietocarrizosa Ferrero DU & Uría (PPU) acted as Peruvian counsel to Ardian, with a team comprising partner Rafael Boisset and associate Alessandro Mussio; senior associate Milagros Pastor and senior associate Claudia Loyola advised on tax matters; while director Veronica Vergaray and associate Ximena Del Rosario advised on antitrust matters; and associate Angela García on energy matters.

Estudio Miranda & Amado and Loyens & Loeff advised the sellers, former shareholders of the acquired companies, locally and in the Netherlands, respectively.

Linklaters and Gibson Dunn also advised Ardian in the Netherlands and New York, respectively.