The Ontario Teachers’ Pension Plan has agreed to acquire interests in two water supply, distribution and wastewater services companies in central Chile for an undisclosed amount.
The plan has agreed to acquire 100% of Aguas Nuevo Sur Maule, S.A.(ANSM), a private company that is wholly owned by Southern Cross Group, a private equity firm.
Teachers’ has also agreed to purchase a 50.01% interest in Empresa de Servicios Sanitarios del Bio-Bio S.A.(ESSBIO)from Southern Cross Group. In addition, it expects to tender an offer for up to 100% of the company as required under Chilean regulations.
“These acquisitions represent our first infrastructure investments in South America,” says Jim Leech, the plan’s senior vice-president. “Chile is an excellent country for us to invest in because of its growing economy, openness to foreign investment, and mature regulatory environment for water and wastewater services.”
Both transactions are expected to close within the next three months.
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