Norwegian utility Statkraft has signed an agreement to buy a majority stake in the listed Chilean hydropower company Empresa Eléctrica Pilmaiquén SA (Pilmaiquén).
Pilmaiquén owns and operates the 52.5 MW Rucatayo hydropower plant in the south of Chile, including a transmission line connecting the power plant to the grid. The company also holds water rights for three hydropower projects in the same river and employs 43 people.
"This acquisition strengthens Statkraft’s position in Chile and expands our project portfolio for further growth within international hydropower," said Statkraft EVP of International Hydropower, Øistein Andresen.
Two of the projects in Pilmaiquén’s portfolio, Osorno (54.3 MW) and Los Lagos (50.8 MW) are ready for construction, and the transmission line has the necessary capacity to connect all three projects.
Statkraft has offered to purchase 70.47 per cent of the firm’s shares, triggering a mandatory offer to all shareholders. Completion of the transaction requires fulfilment of certain conditions, including Statkraft acquiring a minimum of 75 per cent of the shares.
Through SN Power, Statkraft has been active in Chile since 2004. In June 2014, SN Power’s assets in Chile were operationally integrated into Statkraft.
