Intergen offloads Mexican assets to Actis
December 22, 2017 |
Canadian and Chinese-owned power generation firm agrees to a $1.26bn deal with the UK-headquartered EM investor
Intergen said it has agreed to sell its Mexican assets to Actis Group for $1.256bn, in a deal that saw multiple suitors vie for the energy generating portfolio.
The Canadian and Chinese co-owned Intergen will offload six combined-cycle gas turbine projects comprising 2,200 MW in capacity and a 155 MW wind farm, which it co-owns with Mexican power company IEnova.
According to a statement from Intergen, the company also owns and operates three gas compression stations and one 65km gas pipeline in the country.
Sources previously told LatinFinance that Intergen started a formal sales process in May, while opening offers came in from bidders in late July.
Bank of America Merrill Lynch and Barclays were financial advisors to Intergen, while Scotiabank advised Actis. Milbank was legal counsel to Actis, the law firm said in a separate statement.
Infrastructure-dedicated and emerging market investors are expected to increase their significance in the Latin American M&A market in the coming year, sources have said. According to one banker, fund managers are no longer just focused on majority, or controlling, stakes in LatAm assets, rather settling for minority or co-owned shares.
Intergen is jointly owned by Canada's Ontario Teachers' Pension Plan and China's Huaneng Group and Guangdong Yudean Group. Actis is an EM investor with assets in Asia, Africa and Latin America. It has raised more than $12bn since its inception.