- Terna refocuses its international footprint according to its updated 2021-2025 Industrial Plan
- CDPQ makes its first power transmission investment in Latin America with the purchase of Terna's transmission network in Brazil, Peru and Uruguay
- The acquisition marks the creation of a new CDPQ platform dedicated to transmission of electricity in Latin America
Terna S.p.A., Terna Plus S.r.l. and Terna Chile S.p.A. (collectively "Terna Group") signed an agreement with CDPQ, a global investment group, for the sale of 100% of Terna Group's portfolio of power transmission assets in Brazil, Peru and Uruguay, for an equity value of over 265 million euros.
Terna's recently constructed, state-of-the-art transmission network in Latin America extends approximately 1,200 kilometres in three countries, Brazil, Peru and Uruguay. Thanks to significant investments in the region over the past five years and leveraging of its core expertise, Terna Group has contributed to the sustainable development of resilient and fully digitalized infrastructure, with the involvement of local communities. The transaction will allow Terna to record a capital gain of over 60 million euros.
"Terna will now refocus its international footprint in low-risk markets with attractive growth potential, as we announced in our updated 2021-2025 Industrial Plan", said Giacomo Donnini, Head of Terna International Operations.
The acquisition of these key assets will enable CDPQ to enter the Latin American energy transmission market, with a strong management team in place capable of pursuing growth opportunities, and in a manner consistent with its climate strategy and its objective of achieving a 60% reduction in the carbon intensity of its portfolio by 2030.
"With this first investment in power transmission in Brazil, Peru and Uruguay, we are laying the foundation of a new CDPQ platform dedicated to power transmission in Latin America, with an objective of becoming a key player in this critical sector of the economy. We are determined to drive the expansion of networks connecting new renewable energy projects to clients throughout the region, an objective in line with both our Latin American and portfolio decarbonation strategies," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.
The closing of the deal is planned to occur in multiple steps, for the most part in the second half of 2022, subject to the fulfillment of certain customary conditions. Terna Group was assisted by Santander Corporate & Investment Banking as financial advisor and by the international law firm Curtis, Mallet-Prevost, Colt & Mosle as legal advisor. Pinheiro Neto Advogados served as legal advisor to CDPQ.