Global fund manager IFM Investors has sold Australian clean energy company Pacific Hydro to the Chinese-based State Power Investment Corporation (SPIC).
IFM Investors was not surprised by the level of buyer interest in the business which runs 19 wind farms and hydro-electric projects across Australia, Chile and Brazil.
The reported 10-figure deal means about five million industry superannuation fund members will, for the time being, have less exposure to clean energy in their infrastructure investments.
IFM Investors' global head of infrastructure Kyle Mangini said the fund manager has been a proud, long?term owner of Pacific Hydro and "invested heavily in growing the business over the last 10 years."
"We are not surprised with the level of buyer interest in the business and are particularly pleased that Pacific Hydro is transitioning to an owner of the quality of SPIC, who will continue the path of growth and excellence," Mangini said.
SPIC chairman Wang Binghua said the acquisition will add a high quality global renewable development platform to the corporation's portfolio.
"SPIC is committed to maintaining the stability of Pacific Hydro's current business and management team, as well as supporting expansion through the pipeline of development projects," Binghua said.
Pacific Hydro's projects generate about 900 megawatts per year and a further 1700MW are in the development pipeline of greenfield projects. Its current operating assets abate an estimated 1.5 million tonnes of greenhouse gas pollution every year.
SPIC is a comprehensive energy group and the result of the merger between the former China Power Investment Corporation and State Nuclear Power Technology Corporation. It has total assets of US$113 billion and its total installed capacity exceeds 100 gigawatts with presence in 35 countries and regions overseas including Malta, Japan, Turkey, and Vietnam.
SPIC was advised by Santander Global Corporate Banking and King & Wood Mallesons. IFM Investors was advised by Credit Suisse, Merrill Lynch and Herbert Smith Freehills.
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