InterGen to sell Mexican energy assets to Actis for $1.2bn

Energy acquisition news : US-based global power generation firm InterGen has reached a deal to sell its Mexican energy assets, including 2.35GW of power generation capacity, to investment company Actis for $1.256 billion.

The power generation assets that are primarily included in the transaction are six combined-cycle gas turbine projects with a total capacity of 2.2GW along with a 155MW wind project named as Energia Sierra Juarez with its partner IEnova in Baja California Mexico.

The gas-fired power plants to be sold by InterGen to Actis include the 271MW Chihuahua in Samalayuca, 1.1GW La Rosita in Baja California and the 205MW San Luis de la Paz in Guanajuato.

Also part of the transaction are three gas compression stations and a 65km El Sauz natural gas pipeline in the country.

Wind power project. Image courtesy of kongsky at FreeDigitalPhotos.net

Tim Menzie – the CEO of InterGen, said: “We are pleased to have reached this agreement with Actis, a recognized investor in the energy and infrastructure space in Latin America, including Mexico.

“While we are committed to growing our portfolio over the long term, this transaction represents a significant opportunity to realize value from our investment in the region.”

The transaction, which will be subject to regulatory approvals, is anticipated to be completed in Q2 2018.

Michael Harrington – partner in the energy business of Actis, said: “This is a landmark transaction that further cements our commitment to the compelling opportunity we see in Latin America and Mexico in particular.

“We are delighted to invest behind the successful business that InterGen has created and continuing to build it into a leading platform in the region. This is an important building block that underpins Actis’ focused strategy of creating scalable energy businesses in key growth markets.”

Jointly owned by the Ontario Teachers’ Pension Plan and China Huaneng Group/Guangdong Yudean Group, InterGen operates 11 power plants with a total power generation capacity of 6.8GW.

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