Three international bidders have advanced to the second round of bidding for Brookfield’s Colombian electricity distributor Empresa de Energía de Boyacá (EBSA), according to three sources.
The companies bidding for the Brookfield Americas Infrastructure Fund asset are:
– Actis Long Life Infrastructure Fund
– iSquared (through energy subsidiary Inkia)
One of the sources said the process should close within three months.
Advising Brookfield on the transaction are Baker McKenzie and Credit Suisse.
Actis, iSquared and Transelec failed to respond to requests for comment.
Acquiring the asset would represent the first investment in the country for any of the named bidders.
The Actis Long Life Infrastructure Fund had raised USD 900m by February 2019 and has to date made one investment in the El Pelicano 100MW Solar Plant in Chile.
ISQ Global Infrastructure Fund II closed the acquisition of energy unit Inkia power from Kenon Holdings in December 2017 for a reported USD 1.23bn. The company owns minority and majority interests in at least 11 electricity generation companies with installed capacity of 3,500GW in ten Latin American countries, excluding Colombia, as well as one electricity distribution company in Guatemala.
According to Transelec’s annual report, the company owns transmission lines and substations exclusively in Chile.
China Southern Power Grid closed the acquisition of a 27.75% stake in Transelec from Brookfield in March 2018 for USD 1.3bn. Other shareholders include Canadian pension funds Canada Pension Plan Investment Board (27.75%), British Columbia Investment Management Corporation (26%) and PSP Investments (18.5%).
Brookfield Americas Infrastructure Fund, a USD 2.7bn fund closed in 2010, owns EBSA among its portfolio of utility and infrastructure holdings. The utility distributes electricity to the 1.5m residents of the central Colombian departments of Boyacá and Santander through 20,000 miles of power transmission lines and 88 sub-stations, according to its website.
Brookfield acquired EBSA in a December 2011 government auction for COP 807.7trn (USD 426.5m).