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UK fund Actis to acquire Peru power generation stakes
Deal between Niagara Energy and Enel subsidiaries valued at US$1.4 billion
Michael Marray 29 Nov 2023

Actis, a UK-based infrastructure fund, has signed a deal to acquire stakes in Peruvian electricity generation companies Enel Generacion Peru and Compania Energetica Veracruz.

The seller is Rome-based Enel, via its subsidiaries Enel Americas and Enel Peru, the latter controlled by Enel through the Chilean-listed company Enel Americas. The buyer is Niagara Energy, a Peruvian company controlled by Actis. Milbank acted as legal counsel to Actis.

Niagara Energy will acquire the stakes held by Enel Peru and Enel Americas in Enel Generacion Peru’s share capital (66.50% and 20.46%, respectively). It will also acquire Enel Peru's 100% stake in Compania Energetica Veracruz.

The deal is valued at US$1.4 billion, equivalent to an overall enterprise value of around US$2.1 billion.

The consideration is subject to adjustments customary for these kinds of transactions in consideration of the time between signing and closing.

The sale, expected to close by the second quarter of 2024, is subject to conditions including clearance from Peru’s antitrust authority. The sale of the stakes held in Enel Generacion Peru will be carried out through a full takeover bid Niagara Energy has committed to launch following satisfaction of the conditions.

The Enel Group has been a leading energy player in Peru since 2007, operating in power distribution and supply. It has around 1.6 million end users in northern Lima,  and 2.4 gigawatts of installed generation capacity, the majority of which is from renewables.

In April this year Enel Peru sold its distribution assets, Enel Distribucion Peru (83%) and Enel X Peru (100%), to China Southern Power Grid International for US$2.9 billion. Hogan Lovells represented Enel Peru.

In December 2022 the company sold its transmission assets in Chile for US$1.4 billion. The buyer was Grupo Saesa, controlled by Ontario Teacher's Pension Plan and Alberta Investment Management Corporation. 

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