European energy producer Statkraft has agreed to purchase a majority stake in Chilean hydropower company Empresa Electrica Pilmaiquen S.A.
Financial details of the deal were not disclosed, but the agreement initially includes the purchase of 70.47% of Pilmaiquen’s shares and triggers a mandatory offer to all shareholders. Completion of the deal requires the fulfillment of certain conditions, Statkraft said in a release, includings its acquisition of a minimum of 75% of Pilmaiquen’s shares.
“This acquisition strengthens Statkraft’s position in Chile and expands our project portfolio for further growth within international hydropower,” Statkraft executive Oistein Andresen said.
The Las Condes-based company owns and operates the 52.5-MW Rucatayo hydropower project, plus rights three others — two of which, the 54.3-MW Osorno and 50.8-MW Los Lagos, are ready for construction.
Statkraft has been active in the Chilean market since 2004 with a 50% share in the Tinguiririca Energia Joint Venture (TEJV) that is co-owned by Pacific Hydro.
The company also announced it had integrated SN Power’s Chilean assets into Statkraft this past June.