Actividades de Construccion y Servicios (ACS), the Spanish infrastructure group, has entered into an agreement to sell seven of its transmission assets in Brazil to Chinese utility State Grid Corporation, the Spanish outfit announced in a statement.
The transmission lines, which run over close to 2,800 kilometres across eight Brazilian states, were sold for an enterprise value of €751.7 million – including €423.4 million in equity and €328.3 million in debt.
ACS said the sale was subject to the usual regulatory approvals.
For the Chinese utility, ACS’ Brazilian assets mark its second investment in the Latin American country and fourth overseas acquisition. Earlier this year, State Grid Corporation bought a 25 percent stake in another Portuguese speaking country – Portugal – for some $508 million.
In late 2010, the Chinese utility picked up another seven electricity transmission lines in Brazil worth close to $1 billion.