Brookfield Infrastructure Partners LP agreed to divest its roughly 27.8% stake in the Chilean regulated transmission business, ETC Transmission Holdings SL, to China Southern Power Grid International (HK) Co. Ltd for US$1.3 billion.
The partnership plans to use the sale proceeds to finance what CEO Sam Pollock called a "growing backlog of organic growth projects, as well as our robust pipeline of transactions."
"Over the past year we have been focused on executing the next phase of our capital recycling program, seeking to dispose of mature infrastructure assets and to redeploy the proceeds in higher-returning opportunities," Pollock added.
ETC Transmission owns Transelec SA, which is touted as the "largest pure-play" power transmission company in Chile, with more than 10,000 kilometers of electricity lines serving approximately 98% of the Chilean population, according to a Dec. 26 release. The transaction is expected to close in the first half of 2018.
Santander GCB and Scotiabank are serving as financial advisers to Brookfield Infrastructure and Goodmans LLP is acting as its legal adviser.