TORONTO – The renewable energy arm of Brookfield Asset Management (TSX:BAM.A) and its institutional partners have agreed to buy hydro, wind and biomass power generating assets in Brazil from Energisa SA for the equivalent of US$545 million.
Brookfield sees the Energisa deal as a way to significantly expand and diversify its renewable power holdings in Brazil, which has South America’s leading economy
Brookfield Renewable Energy Partners L.P. (TSX:BEP.UN) will buy the assets, with 40 per cent of the purchase price coming from Brookfield and 60 per cent from institutional partners, which are private investors in a Brookfield-managed fund.
Including debt that the buyers will assume, Brookfield said the assets have an estimated enterprise value of about US$935 million.
The power plants are in different parts of Brazil: the hydroelectric plants are in centre west and southwest markets; the wind generators in the northeast and the biomass generation near Sao Paulo and Mato Grosso, an agricultural region that produces sugar and ethanol.
The assets have total capacity of 488 megawatts — 163 MW hydro, 150 MW wind and 175 MW biomass).
Brookfield currently has about 670 MW of generating capacity in Brazil, all from hydro, and 6,700 MW of capacity globally.
Brookfield Renewable Energy Partners is a Bermuda-registered affiliate of Brookfield, which has about $200 billion of assets under management, making it one of Canada’s largest investment groups.