TPG has agreed to acquire seven brownfield transmission lines out of bankruptcy from Abengoa Brasil for BRL 482.5m (USD 145.66m).
In a mandated auction process in the Corporate Court of the Judicial District of Rio de Janeiro, TPG on 13 December exercised its right to top any rival bid by 1% and assume the projects’ BRL 1.3bn debt.
The US-based private equity firm swooped in after local private equity fund VertiCapital attempted to acquire the assets. A source confirmed that VertiCapital had bid BRL 477.7m only to be beaten out by TPG after several hours.
TPG had previously submitted a binding bid of BRL 400m with the right to top new offers.
The sale took place as part of Abengoa’s restructuring process in agreement with the company’s creditors.
Under judicial supervision, Abengoa is selling all of its Brazilian assets to repay creditors that had backed its operations.
Abengoa may continue as an EPC contractor, the source said, but will not consider further investments in Brazil in the near future.
Both Abengoa and TPG declined to comment on the trade.
Abengoa Brasil filed for bankruptcy protection at a Rio de Janeiro court on 29 January 2016.
Abengoa also owns contracts for nine greenfield transmission lines that it won in 2013 and 2014, but the Ministry of Mining and Energy (MME) decided on 27 October to cancel those contracts and re-tender them.