REN buys Chilean energy transport company for 149M€

Redes Energéticas Nacionais (REN), led by Rodrigo Costa, acquired 100% of the Chilean energy transport company, Transemel, for US$ 167M (148.9M€), according to an official communique.

As the same document informs, the Chilean company owns and operates 92 kilometres of energy transmission lines and 5 substations in the North of Chile, where REN had already an operation of its own.

The company that manages the Portuguese energy and natural gas network announced in February the acquisition of 42.5% of Electrogas, which is one of Chile’s major power companies. Eletrogas owns the gas pipeline connecting Quintero’s LNG terminal to the capital Santiago.

The acquisition of Transemel was advised by Santander Corporate & Investment Banking, “fitting into REN’s growth strategy that privileges the investment on projects and sectors in which REN has expertise”, adding that it “will be exclusively financed through external debt”.

The contract signed with Compañia General de Electricidad and Naturgy Inversiones Internacionales foresees the conclusion of the acquisition process in October this year as it needs the approval of Chilean regulatory agents to become official. Recall that 93% of Transemel’s generated revenue is under regulation.