Said to be the third-largest power generation company in Colombia with six hydroelectric plants, Isagen has a total installed capacity of around 3,032MW.
Isagen operates the country’s largest operating hydro power generating facility in San Carlos and largest hydro-based reservoir by volume in Sogamoso. It generates close to 15,000GWh of clean power annually which accounts to nearly 20% of the nation’s annual production.
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.
"This transaction aligns with our objective of building our global renewable energy business with high quality, predominantly hydro assets."
A Brookfield led consortium including its institutional partners would conduct two tender offers with respect to the remaining outstanding shares of Isagen.
Brookfield Renewable would pay Isagen $1.38 per share.
The government is planning to use the proceeds from the sale to fund the development of highways, bridges and tunnels across the country, Reuters reported.
Nearly 70% of the electricity in the country is generated from hydroelectric plants, with higher-priced natural gas and coal accounting for most of the remainder.
Brookfield Renewable is a subsidiary of Brookfield Asset Management, a global alternative asset manager with over $225bn of assets under management.
In October last year, Brookfield Renewable agreed to purchase 292MW of hydroelectric portfolio in Pennsylvania from Talen Energy for $860m.
Image: Isagen owns and operates 3,032MW of hydroelectric generating capacity. Photo: courtesy of markuso / FreeDigitalPhotos.net.
