Ontario Teachers’ Pension Plan (OTTP) has agreed to acquire a 100% interest in Brazil-based electricity transmission platform Evoltz from TPG for an undisclosed amount.
(OTPP) Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) is pleased to announce that it has entered into a definitive agreement with TPG, a global alternative asset firm, to acquire a 100 percent interest in Evoltz Participações S.A. (“Evoltz”), a leading electricity transmission platform in Brazil. Founded by TPG in 2018, Evoltz consists of seven electricity transmission lines that total more than 3,500km across 10 states in Brazil.
“Evoltz is a highly attractive portfolio of power transmission concessions that provides reliable power to businesses and consumers across Brazil,” said Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources at Ontario Teachers’. “Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows. Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.”
Ontario Teachers’ has extensive experience investing in regulated electricity transmission and distribution businesses, as well as the broader energy sector. Earlier this year, Ontario Teachers’ acquired a 40 percent stake in Caruna, Finland’s largest electricity distribution company. It has been active in Chile’s transmission and distribution sector for over 12 years through a 50% stake in Saesa. The acquisition of Evoltz represents a significant infrastructure investment adding to Ontario Teachers’ portfolio of high-quality investments in Brazil and across Latin America.
“Since founding Evoltz three years ago with the acquisition of seven transmission assets from judicial recovery, we have been proud to work with management to turn-around the prospects for Evoltz and establish it as a leading independent operator in Brazil’s energy transmission sector,” said Edward Beckley, Partner at TPG. “Today, having expanded and consolidated its operations, Evoltz plays an important role in delivering green, renewable energy to major cities and population centers across the country. We look forward to its next chapter under Ontario Teachers’ leadership.”
“I would like to take this opportunity to thank TPG, our board of directors, and employees for the hard work and support in building and transforming Evoltz into a leading operational electricity transmission company,” said João Nogueira Batista, CEO of Evoltz. “We are pleased to welcome Ontario Teachers’ as our new shareholder and are excited to work with them to drive the company to new heights.”
The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions and regulatory approvals.
About Ontario Teachers’
The Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is the administrator of Canada’s largest single-profession pension plan, with C$221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
TPG is a leading global alternative asset firm founded in 1992 with more than $91 billion of assets under management and offices in Beijing, Fort Worth, Hong Kong, London, Luxembourg, Melbourne, Mumbai, New York, San Francisco, Seoul, Singapore, and Washington, DC. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth equity, impact investing, real estate, secondaries, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit www.tpg.com or @TPG on Twitter.
Founded in 2018, Evoltz operates and maintains 3,561 km of electricity transmission lines that cross ten Brazilian states and are distributed into seven concessions (Manaus Transmissora de Energia, Norte Brasil Transmissora de Energia, Evoltz IV, Evoltz V, Evoltz VI, Evoltz VII and Evoltz VIII). Based out of its headquarters and operational center in Rio de Janeiro, Evoltz is a holding company with end-to-end management of its concessions, leveraging cutting-edge technology and best practices within the electricity transmission sector. Learn more at: www.evoltz.com.br.