Terna Group Sells Latin America Power Transmission Business to CDPQ

Posted on 05/03/2022

The Terna Group is a major European and global electricity transmission operators. It operates the high-voltage national transmission grid with about 75,000 km of lines, around 900 electrical substations throughout the Italian territory and 26 interconnections with foreign countries. Terna S.p.A., Terna Plus S.r.l. and Terna Chile S.p.A. (collectively “Terna Group”) signed an agreement with CDPQ 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, transmission network in Latin America extends approximately 1,200 kilometers in three countries, Brazil, Peru, and Uruguay.

Terna will now refocus its international footprint in low-risk markets with attractive growth potential, as they announced in their updated 2021-2025 Industrial Plan.

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.

Keywords: Caisse de depot et placement du Québec (CDPQ)

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