ACON Investments and its affiliates (ACON) has announced that its third Latin American-focused private equity fund, ACON Latin America Opportunities Fund and ACON Latin America Opportunities Fund-A, has completed the sale of its portfolio company, Hidrotenencias, to EnfraGen Spain.
Hidrotenencias owns and operates three run-of-the-river hydro power plants located at the Piedra River, in the Chiriqui province of Panama. Each of the plants is located in the same river on a cascade arrangement. The Company started operations in 2008 and is headquartered in Panama City, Panama.
ACON invested in the Company in partnership with the founding shareholders, who remained as minority investors and operating partners. During ACON’s investment, the Company tripled its installed capacity, secured long-term PPAs, engaged in regional energy trading and obtained financing in the public markets through a series of bond offerings. Under the leadership of Alejandro Hanono as CEO, the Company had an outstanding record of performance in spite of a challenging price environment and variant hydrology conditions. “We are very proud of Alex, the Hidrotenencias team and our achievements in this investment. We are confident that this success will continue under the ownership of Glenfarne, an experienced and highly qualified operator of power assets in the region,” said Jorge Dickens, Managing Partner at ACON.
“This investment is a clear example of ACON’s continued effort to promote high environmental and social standards in its portfolio companies in the region,” added Mauricio Cortes, Managing Director at ACON. “We look forward to seeing the Company and its management team continue to thrive as responsible leaders in the growing regional power market,” concluded Mr. Cortes.
UBS Investment Bank served as financial advisor to Hidrotenencias, Morgan & Morgan served as its local legal advisors and Hogan Lovells LLP served as its U.S. legal advisors.
Source: Company Press Release