I Squared Capital, a leading global infrastructure investment manager, announced that it has divested Energuate, its electricity distribution asset in Guatemala and a subsidiary of Inkia Energy, a leading power platform across Latin America, to Threelands Energy Ltd.
Energuate is the largest privately-owned electricity distribution company in Central America, serving nearly 12 million beneficial users across over 100,000 square kilometers. The company plays an integral role in supporting the Government of Guatemala’s Rural Electrification Program, which focuses on last-mile electrification of under-resourced communities in rural areas of the country. The company is also engaged in the development of Guatemala’s transmission system through a comprehensive investment plan carried by its electricity transmission subsidiary.
Under I Squared’s ownership, the company’s customer base increased from 1.7 million to 2.3 million complemented with significant growth in per capita consumption, and executed a robust operational improvement plan, including a reduction in electricity losses, enhancement of collection initiatives and other network efficiencies. The company’s performance also improved markedly across several quality-of-service metrics, including increased customer satisfaction rates.
“We are pleased to have supported Energuate’s growth into a more efficient enterprise,” said Gautam Bhandari, Managing Partner and Chief Investment Officer of I Squared Capital. “In partnership with Inkia Energy, we executed a value creation strategy informed by the expertise and experience from across our power portfolio, which drove significant growth across the business. We are confident that Energuate is well-positioned for continued growth.”
Financial terms of the transaction were not disclosed. Gibson, Dunn & Crutcher LLP served as legal advisor and Citigroup Global Markets Inc. as financial advisor to Inkia Energy and I Squared Capital. Threelands Energy Ltd was represented by Skadden, Arps, Slate, Meagher & Flom LLP as lead legal advisor and Inverlink as financial advisor.
