Patria Investments agreed to acquire nine hydro power plants in Brazil for USD1.73b from Kani Lux Holdings, a subsidiary of ContourGlobal.
(Yahoo! Finance) Kani Lux Holdings, a subsidiary of ContourGlobal, has entered into a definitive agreement with Infraestrutura Brasil Holding XVII, or Pátria Investments, to sell its Brazilian hydro power plants for 1.73 billion reais ($313 million).
According to a statement issued by UK-based ContourGlobal on Thursday, the deal includes the assumption of net debt attached to the assets and other adjustments typical of such transactions.
“We are pleased to have agreed the sale of our hydro assets in Brazil to Patria Investments following a competitive process,” said Joseph Brandt, president and chief executive officer of ContourGlobal. “Patria is the leading private equity investor in Brazil and has built an impressive business based upon careful long-term investing.”
Brandt said this sale is consistent with Contour’s “drive to unlock value from undervalued assets in our portfolio and deliver further attractive risk adjusted returns for our shareholders.”
The hydro assets in Brazil comprise nine hydro-electric generating businesses operating under long-term contracts with 168MW of gross capacity, the statement added.
BNP Paribas and Cantor Fitzgerald acted as ContourGlobal’s financial advisers.