The Colombian Government has sold 57.6% controlling stake in power generator Isagen to Brookfield Renewable Energy Partners for nearly COP6.49trn ($2.2bn).
The transaction is expected to close on 26 January this year and marks the largest privatisation in Colombia for nearly ten years, reports Reuters.
Isagen is the owner and operator for multiple renewable energy projects in the country and has an installed capacity of around 3,032MW.
Claimed to be the third-largest power generation company in Colombia, it also has a 3.8GW development portfolio in the country.
The firm’s portfolio includes six hydropower facilities plants, along with the largest operating hydro power generating facility in Colombia at San Carlos and largest hydro-based reservoir by volume in Sogamoson.
Isagen maintains an average annual generation capacity of around 15,000GWh, which accounts for nearly 20% of the country’s power mix.
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 labour 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 will be carrying out two tender offers for the remaining outstanding shares of Isagen.
Colombia intends to use the sale proceeds for its 4G infrastructure projects, which are expected to lead to the development of highways, bridges and tunnels across the country, reported Reuters.
Image: Isagen’s annual capacity accounts for approximately 20% of power produced in Colombia. Photo: courtesy of markuso / FreeDigitalPhotos.net.