Brookfield Renewable Energy Partners has led a consortium of investors to buy a $2 billion majority stake in Isagen, Colombia’s state-owned electricity company.
The consortium is purchasing a 57.6 percent interest in the company, which generates 20 percent of Colombia’s energy production and owns a portfolio of over 3,000 megawatts (MW) of hydroelectric assets. The deal was for 1.5 million shares of Isagen common stock at $1.38 per share, the minimum set by the government. Isagen’s portfolio is made up of six hydroelectric plants including Colombia’s largest, the San Carlos.
Brookfield, an investment firmed based in Canada, has committed $243 million to the deal, giving it a 9 percent stake in Isagen.
Part of the deal requires the consortium to conduct two tender offers for the remaining Isagen shares. If all shares are sold, Brookfield’s commitment would rise to $517 million, giving it a 25 percent stake in the company.
Brookfield said in a statement it has $1.2 billion of available liquidity. Last November, the firm made up to $131 million of series 7 preferred stock available, and said it plans to invest $500 million a year in hydroelectric assets. Despite posting third-quarter results showing hydro plants performing under the long-term average, chief executive Sachin Shah said the company will continue to prioritise the asset class.
One of Brookfield’s more recent acquisitions was last October when it purchased two Pennsylvania hydro plants generating 292MW for $860 million. Brookfield’s global portfolio consists of hydro and wind assets across North and South America and Europe generating over 7,000MW.