Northland Power Inc said on Monday it would buy most of Colombian utility Empresa de Energia de Boyaca in a deal valued at C$1.05 billion ($797.9 million), including debt.
The proposed acquisition is Northland’s second investment in Latin America, following the La Lucha solar project in Mexico that began construction earlier this year.
EBSA serves a population of 1.3 million residents across 123 municipalities, Northland Power said.
The company said it expected the deal to add to its free cash flow by mid-single-digit during the current regulatory period ending 2023.
Based on submitted tariff, EBSA is expected to contribute about C$100 million to adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in 2020.
The deal is expected to close in the fourth quarter this year.
Source: Reuters.com