Brookfield Renewable Energy Partners LP has announced an agreement to acquire a 488 MW multi-technology renewable energy portfolio in Brazil from Energisa S.A.
The company says the portfolio includes 150 MW of wind, 163 MW of hydro and 175 MW of biomass projects. It also includes a 55 MW biomass plant expansion slated to happen in the near term.
‘This is an attractive opportunity to acquire a diversified portfolio of renewable operating assets in a market we know well, and with an average contract duration of 10 years,’ says Richard Legault, president and CEO of Brookfield Renewable. ‘Brazil remains a long-term growth market in need of new supply, and we remain well positioned to find accretive growth opportunities.’
The transaction represents a total enterprise value of approximately $935 million, subject to working capital adjustments. The equity purchase price is $545 million, net of assumed long-term non-recourse debt. Brookfield Renewable says it will acquire and fund the transaction with its institutional partners and maintain an economic interest in the portfolio of approximately 40%.
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first quarter of 2015.