26 July, 2018 Chile

Antofagasta Minerals continues to divest assets

Corporate / M&A - Energy, Mining and Natural Resources - Tax and International Trade

Philippi Prietocarrizosa Ferrero DU & Uría (Chile) has helped mining company Antofagasta Minerals sell its electricity transmission business to Spain’s Red Eléctrica for US$117 million.

Red Eléctrica, which conducted the acquisition through its Chilean subsidiary, relied on Aninat Schwencke & Cia. The deal was signed on 12 July.

The target company, Centinela Transmisión, operates three transmission lines that provide electricity to the Centinela copper mine located in the Antofagasta region north of Santiago. Antofagasta made the sale through its subsidiary Minera Centinela.

Antofagasta’s sale is part of the company’s efforts to divest its water and energy assets and focus more on its core business of copper production. Last year, it sold its 40% stake in the Javiera solar plant located in the Antofagasta region to Atlas Renewable Energy. That same year, it also parted with its minority stake in the Alto Maipo hydroelectric power station, located on the upper Maipo River southeast of Santiago.

The Centinela Transmisión acquisition marks Red Eléctrica’s latest investment in the country. Its subsidiary Redenor won a concession to operate more than 258 kilometres of transmission line in Chile in 2017. The year before, it acquired a 50% stake in transmission line operator Transmisora Eléctrica del Norte.

Red Eléctrica also operates in Peru through its energy subsidiaries Redesur and Red Eléctrica Andina.

 

Counsel to Antofagasta Minerals

Philippi Prietocarrizosa Ferrero DU & Uría (Chile)

Parters Carlos Alberto Reyes and Guillermo Infante, and associates Mario Fava, Fernando Bustos and Macarena Chacc


Counsel to Red Eléctrica Chile

Aninat Schwencke & Cia

Partners Nicolás Atkinson and Javier Velozo, director Francisco Prado, and associates Santiago Achurra and Cristóbal Valenzuela


 

Source: Latin Lawyer

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