Electroandes, a hydro generation firm in Peru, is to be sold by PSEG Global to SN Power for a total consideration of US$390M.
The Peruvian firm owns and operates four hydro plants with 180MW combined capacity plus transmission lines.
PSEG Global, a subsidiary of PSEG, entered into an agreement to sell Electroandes and the transaction is expected to close next month. Under the agreement, SN Power will assume US$106M of debt.
The sale is part of PSEG Global’s strategy of seeking disposal opportunities for its assets at attractive prices, it said in a statement. The divestment is expected to result in an after-tax gain to be recorded as a discontinued activity, and after-tax net
Cash is expected to be US$215M-US$225M.
SN Power is owned by Norwegian firms Statkraft, the major hydro utility, and Norfund, the risk capital investor. SN Power is investing overseas in projects and has already made a major acquisition in the Philippines.
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