Ontario Teachers’ Pension Plan Board is buying an electricity transmission platform in Brazil from TPG.
Ontario Teachers has agreed to buy Evoltz Participações from the global alternative asset manager for an undisclosed sum.
Founded by TPG in 2018, Evoltz consists of seven electricity transmission lines that total more than 3,500km across 10 states in Brazil.
Dale Burgess, senior managing director, infrastructure and natural resources at Ontario Teachers, said: “Evoltz is a highly attractive portfolio of power transmission concessions that provides reliable power to businesses and consumers across Brazil.
“Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows. Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.”
Ontario Teachers is already invested in regulated electricity transmission and distribution businesses, as well as the broader energy sector. Earlier this year, the C$221.2bn (€150.5bn) Canadain fund acquired a 40% stake in Finnish electricity company Caruna. It has also been active in Chile’s transmission and distribution sector for over 12 years through a 50% stake in Saesa.
Edward Beckley, partner at TPG, said: “Since founding Evoltz three years ago with the acquisition of seven transmission assets from judicial recovery, we have been proud to work with management to turn-around the prospects for Evoltz and establish it as a leading independent operator in Brazil’s energy transmission sector.
“Today, having expanded and consolidated its operations, Evoltz plays an important role in delivering green, renewable energy to major cities and population centres across the country. We look forward to its next chapter under Ontario Teachers’ leadership.”
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