Brazilian energy company Equatorial Energia has agreed to sell its portfolio of power transmission assets to a firm owned by Canada’s Caisse de depot et placement du Quebec (CDPQ), it said in a securities filing late on Friday.
Equatorial said the deal to sell its Equatorial Transmissao subsidiary to CDPQ’s Verene Energia had an enterprise value of up to 9.4 billion reais ($1.61 billion), with an equity value of up to 5.19 billion reais.
The Brazilian firm said the move concludes a profitable cycle of capital allocation in the power transmission segment and allows it to advance in new strategic directions.
“The proceeds from this transaction may be used to accelerate the deleveraging process as well as to pursue organic and inorganic growth opportunities, and to make possible distributions to shareholders,” Equatorial said.
Source: Reuters.com