AIMCo buys 50% interest in Chilean electrical utility

The Alberta Investment Management Corp. (AIMCo) is acquiring a 50% interest in Inversiones Grupo Saesa Limitada, an electrical transmission and distribution company in Chile.

Financial terms of the purchase from Morgan Stanley Infrastructure Partners were not disclosed; however, the buy will make AIMCo an equal partner in the utility with the Ontario Teachers’ Pension Plan, which also holds 50%.

“AIMCo is pleased to acquire a 50% interest in Grupo SAESA, a company that will be a vital part of the continued growth and development of the Chilean economy,” CEO Leo de Bever said in a release.

“We believe that through investments in core infrastructure like transmission and distribution, AIMCo can contribute to the ongoing growth story in Chile alongside our existing investment in Autopista Central,” an urban toll highway in Santiago.

Grupo SAESA is the second-largest electricity distributor in Chile and comprised of seven subsidiaries primarily involved in electricity distribution and transmission. The company delivers electricity to 700,000 customers, or 16% of the Chilean population.

AIMCo. invests globally on behalf of 26 pension, endowment and government funds in Alberta, including the Alberta Heritage Savings Trust Fund.