Enel said that its subsidiary Enel Chile has agreed to sell its electricity transmission business in Chile to Sociedad Transmisora Metropolitana (STM) and its controlling company Inversiones Grupo Saesa for $1.34bn.
Enel Chile holds a stake of 99.09% stake in the business, which operates as Enel Transmisión Chile.
The business involved in the deal operates 683km of transmission lines. It also manages 60 substations in Santiago’s metropolitan area, of which 57 are owned and the remaining three are owned by third parties.
As of 31 December 2021, Enel Transmisión Chile’s total assets amounted to CLP363bn ($400m).
Enel stated: “The transaction is in line with the Enel Group’s current Strategic Plan, as it contributes to the objective of constantly improving and optimising the risk-return profile of the Group and of its asset base, focusing on core businesses.”
The deal will be executed as a full takeover bid by STM after receiving regulatory approval from the Chilean antitrust authority Fiscalía Nacional Económica (FNE).
After completion of the full takeover bid, STM will purchase the entire stake owned by Enel Chile in Enel Transmisión Chile and repay the intercompany loans of the latter.
Inversiones Grupo Saesa is among the largest electricity distributors in Chile on the basis of geographic coverage. The company provides electricity to nearly 950,000 customers.
It operates 63,476km of distribution lines and 2,280 km of transmission lines along with 75 substations. The Chilean electricity distributor is jointly owned by Canada’s Ontario Teachers’ Pension Plan (OTPP) and Alberta Investment Management Corporation (AIMCo).
The closing of the deal is expected to take place by the year-end.
