Algonquin Power and Utilities buying majority stake in Chile’s ESSAL
Deal will make it the Ontario company's first international water utility.
OAKVILLE, Ont. — Algonquin Power and Utilities Corp. has signed a deal to buy a majority stake in a water utility in Chile for $121.5 million.
The Ontario-based company says the agreement would see it acquire a 53.5% stake in Empresa de Servicios Sanitarios de Los Lagos S.A. (ESSAL).
Algonquin says that due to local regulation a tender offer process will also be launched for the remaining shares of the company.
The deal will make ESSAL Algonquin’s first international water utility.
The company in Southern Chile operates 48 potable water production systems, 29 sewage plants and distribution and sewage networks covering 33 municipalities.
The transaction is expected to close later this year.