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  • Providence Capital was the exclusive financial advisor of the selling shareholders.
  • Providence Capital provided a comprehensive advisory services including financial valuation, preparation of marketing documentation, mapping and contacting potential investors, coordination of the sale process including due diligence, and assistance in final negotions through transaction Closing.
  • On 23 February 2015, a group of shareholders of Pilmaiquén totaling 70.47% ownership announced they have signed an agreement to sell their equity stake in this Chilean listed hydropower company to Statkraft.
  • The price per share was US$ 4.88, validating an equity value of US$245 million. Considering that Pilmaiquén’s net financial debt as of December 31, 2014 was approx. US$ 165 million, the implied Enterprise Value was US$ 410 million.
  • The agreement triggered a Tender Offer for 100% of the shares by Statkraft, ended on 17 April 2015.
  • On 23 April 2015, Statkraft acquired 98.2% of Pilmaiquén’s shares through the tender offer.
  • Pilmaiquén owns and operates the Rucatayo hydropower plant (52.5 MW or 309 GWh per year), which began operations in September 2012 in the South of Chile, including a 47-km transmission line connecting the power plant to the grid.
  • The company also holds water rights for three other hydropower projects in the same river basin. Two of the projects, Osorno (54.3 MW / 343 GWh per year) and Los Lagos (50.8 MW / 310 GWh per year) have the main permits to move to construction phase within the short-to-mid term, and the existing 47-km transmission line has the necessary capacity to connect all three projects.
  • According to information provided by Pilmaiquén to the Chilean SEC (SVS), during 2014 the company reached sales and EBITDA of US$34.1m and US$24.1m, respectively.