Statkraft Norway-based strengthens its presence in Chile in hydropower energy

Publicado em 24/03/2015

The Norwegian company Statkraft acquires majority stake in Chilean hydropower Pilmaiquen

The Norwegian company Statkraft AS has concluded an agreement to acquire a 70,47% stake in Chilean hydropower firm Empresa Electrica Pilmaiquen SA. The price of the share will reach $4.87 each for a total amount that should come to nearly $ 183m, plus debt. Completion of the deal implies fulfillment of certain conditions, among others, Statkraft acquiring a minimum of 75% of the shares which will automatically trigger a mandatory offer for all shareholders.

Statkraft is a state-owned electricity company and also the third largest energy producer in the Nordic region. Regarding the renewable energy sector, the company represents the first energy producer based on renewable in Europe. With this take of control, the Norwegian company will reinforce the company’s position in Chile, as well as expanding its project portfolio “for further growth within international hydropower” as the Executive Vice President Oistein Andresen has explained. Statkraft has already been basedin Chile since 2004 with its 50% owned Tinguiririca Energia, a joint venture with Pacific Hydro.

The Chilean investment company that operates notably in the hydroelectric energy already owns and operates the Rucatayo hydropower plant in the south of Chile. The company also intends to build two more projects among the same river.

Therefore, this agreement represents an essential step in the implementation of Statkraft international strategy which consists of investing in hydropower plants and greenfield hydropower projects in countries where Statkraft is already active.

Legal advisors: Barros & Errázuriz Abogados

J.E.