Chilean asset management company Toesca has purchased a minority stake in Empresa Eléctrica Cochrane, a company created to build the Cochrane power plant in the country’s north.
Toesca made the purchase through its Infrastructure Investment Fund II, and the stake in Empresa Eléctrica Cochrane was purchased from Norgener Inversiones for $113.5 million.
The Cochrane plant is a 532MW coal-fired power station located in the northern region of Antofagasta, which features two 236MW net generation units, a substation and a 153km transmission line that injects power to the country's northern SING electricity grid.
The transaction is the first by Toesca’s Infrastructure Investment Fund II and was particularly challenging due to the structure of the transaction, shareholder agreement with Norgener, and the structure of preferences and minority shareholder rights, according to local law Larrain y Asociados, which advised Toesca on the purchase.
In addition to infrastructure, Toesca invests across various asset classes, including real estate and capital markets.
Larrain y Asociados also advised Toesca on a loan to finance the transaction, in which Banco BCI acted as agent.
Larrain's team was led by partner Juan Carlos Bulnes and included associates Juan de Dios Ferrada (corporate/M&A), Francisco Cerda (energy) and Michelle Insunza (finance).
Claro y Cia represented Norgener Inversiones, with a team led by Rodrigo Ochagavía and Jaime Salinas, while Morales & Besa advised Banco BCI and the three insurance companies that provided the loan, Euro América, Principal and Penta Vida.