ContourGlobal to buy Neoenergia’s interest in 130 MW of Brazilian HPPs

US power generation company ContourGlobal LP said today it has entered into an agreement to buy electricity distributor Neoenergia’s interest in a portfolio of Brazilian generation assets that includes 130 MW of hydropower capacity.

The particular 206-MW portfolio consists of seven hydropower plants (HPPs) located in the states of Bahia, Goias and Rio de Janeiro, as well as four cogeneration facilities in Parana, Rio de Janeiro and Sao Paulo with a combined capacity of 76 MW. All assets are operational. Falcon Flight, the investment vehicle of the Santo Domingo family, will own a 20% stake in the portfolio.

The enterprise value of the deal is around BRL 711 million (USD 209m/EUR 197m). The transaction is seen to close during the first quarter of next year upon clearance by the Administrative Council for Economic Defense (CADE) and the National Electric Energy Agency (ANEEL).

"These long-term contracted assets are located in, or adjacent to, Brazilian states in which we have an operating presence and include dollar denominated cogeneration facilities similar to our Solutions plants in Europe and Africa," said Alessandra Marinheiro, executive vice-president of ContourGlobal.

With this acquisition, ContourGlobal’s Latin American portfolio grows to 1,423 MW of operating assets.

(BRL 1.0 = USD 0.294/EUR 0.277)

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