Hydro-Québec, through its wholly owned subsidiary Hydro-Québec International Inc., is announcing that, after an international bidding process, it has reached an agreement to sell its 92% stake in Transelec Chile S.A. for C$1.7 billion to a consortium led by Canadian investment firm Brookfield and made up of various Canadian institutional investors. Brookfield has a well recognized expertise in real estate, infrastructure and power generation. The parties expect to close the transaction on July 5, 2006.
"We are very pleased with this major transaction, which will bring us a profit of over $750 million," said Daniel Garant, Executive Vice President – Finance and Chief Financial Officer of Hydro-Québec and President and Chief Executive Officer of Hydro-Québec International.
Transelec Chile S.A., a major transmission provider, delivers electricity to approximately 99% of the Chilean population through local distribution companies. Its transmission system includes 8,300 kilometres of lines and 51 substations. The remaining 8% of Transelec is owned by the International Finance Corporation, a subsidiary of the World Bank.
“This is our crowning achievement in terms of monetizing our international assets,” added Mr. Garant.
Hydro-Québec wishes to thank Transelec's management and employees for their excellent cooperation over the past six years.