Under the terms of the agreement, Brookfield-led consortium will acquire 1,570,490,767 common shares of Isagen at a purchase price of MXN 4,130 per share.
Isagen owns and operates 3,032MW of renewable energy portfolio with majority being hydroelectric generating capacity. It also has 3,800MW of development portfolio in Colombia.
Brookfield Renewable will own approximate 9% interest in Isagen with equity commitment of approximately $243m.
Brookfield Renewable CEO Sachin Shah said: "We are extremely pleased to grow our business in Colombia, an attractive market with strong long-term growth fundamentals, a highly skilled labor force and continued need for new investment."
Brookfield said that the transaction comes in line with its aim to build global renewable energy business with high quality hydro assets.
The sale, which is a part of the government’s privatization plan, is planned to be completed on 26 January 2016.
The Brookfield led consortium will also conduct two tender offers for the remaining outstanding shares of Isagen.
Colombia Finance Ministry was reported by The Wall Street Journal as saying that the transaction proceeds will be used to fund an important infrastructure project which involves upgrading and expanding a network of highways.
Image: Brookfield plans to boost its global renewable energy business. Photo: courtesy of markuso/FreeDigitalPhotos.net.
