A group led by the Ontario Teachers’ Pension Plan has increased its stakes in two Chilean water utilities after making successful bids in government-held auctions. The transaction cost about $541 million.
The controlling group led by Teachers’ upped its stake in Essbio S.A. to from 51.1% to 89.6% and now holds 94.2% of Esval S.A. (up from 69.8%). A government-owned agency, CORFO, retains a 5% stake in each company, giving it veto power on issues such as water rights transfers and utilities concessions.
“We are pleased to be increasing our ownership of Essbio and Esval and look forward to supporting the future development of both companies,” said Stephen Dowd, senior vice-president, Teachers’ Infrastructure Group. “Chile continues to be an excellent place to invest. As long-term investors, we are attracted by the ability of these two companies to generate predictable returns over many years to help meet the plan’s pension obligations.”
These utilities operate the infrastructure that treats and delivers drinking water, removes wastewater and treats sewage.