REN buys electricity transmission company in Chile for 71.4 million dollars
The agreement for the acquisition of TENSA was made with CMPC, one of the largest industrial groups in the forestry and pulp and paper production sectors in Latin America, REN pointed out.
REN – Redes Energéticas Nacionais, responsible for the overall management of Portugal’s electricity and natural gas networks, has acquired Transmisora de Energía Nacimiento (TENSA), an electricity transmission company in Chile, for 71.4 million dollar, the company announced.
REN is the sole shareholder of Transemel, a REN subsidiary in Chile which operates in the electricity transmission segment and which, with this acquisition, will now operate around 280 kilometres (km) of transmission lines in the country, as well as five substations, the company said in a statement, released on Monday.
“The transaction is part of REN’s strategic plan which, in addition to its organic growth strategy in Chile, provides for the execution of ad hoc acquisitions of assets in operation of an appropriate size and with a risk and return profile in line with REN’s prudent investment principles and within its area of technical competence,” it added.
The agreement for the acquisition of TENSA was made with CMPC, one of the largest industrial groups in the forestry and pulp and paper production sectors in Latin America, REN pointed out.
“TENSA is a Chilean company that owns and operates approximately 190 km of electricity transmission lines, mostly located in the centre-south zone of Chile,” it explained.
“The assets were originally developed to serve the industrial units of the CMPC Group, and have mostly been re-rated as regulated assets as part of the ongoing tariff review process for the 2024-2027 period,” it said.
According to the company, the deal “respects the strict financial discipline that guides REN’s operations, ensuring sustained profitability and the preservation of credit metrics compatible with maintaining an investment grade rating”.
REN also recalled that it decided to invest in Chile in 2017, being a shareholder in Electrogas (42.5%), which owns and operates a 166 km gas pipeline between Valparaíso and the capital Santiago, and the sole shareholder of Transemel.