Algonquin Power & Utilities Corp. completed the acquisition of an additional 40.5% stake in ESSAL S.A. from Aguas Andinas S.A. (SNSE:AGUAS-A) and other shareholders for $69.8 million.
October 13, 2020
Share
Algonquin Power & Utilities Corp. (TSX:AQN) made a tender offer to acquire remaining 49% stake in ESSAL S.A. from Aguas Andinas S.A. (SNSE:AGUAS-A) and other shareholders for $84.5 million on September 10, 2020. Aguas Andinas S.A. will sell 2.51% stake in ESSAL S.A. Algonquin Power & Utilities Corp. will acquire the shares at $0.18 per share. In a related transaction, Algonquin Power & Utilities Corp. entered into an agreement to acquire 51% stake in ESSAL S.A. from Inversiones Iberaguas Ltda for $88 million. After the transaction, Consistent with Algonquin's operating structure, ESSAL headquarters and decision making will remain in Chile. There are no anticipated changes to management or operations staffing as a result of the transaction. The launch of the tender offer and the closing of the transaction between the parties are subject to compliance with the usual conditions for this type of operation. These include that, from the signing of the transaction agreement until its closure, no substantial negative effects occur for ESSAL. The transaction for 2.51% stake is expected to occur in 2020. Algonquin Power & Utilities Corp. completed the acquisition of 2.51% stake in ESSAL S.A. from Aguas Andinas S.A. on October 13, 2020. As a result of this, Algonquin Power & Utilities Corp. now holds 53.51% stake in ESSAL S.A.
Algonquin Power & Utilities Corp. (TSX:AQN) completed the acquisition of an additional 40.5% stake in ESSAL S.A. from Aguas Andinas S.A. (SNSE:AGUAS-A) and other shareholders for $69.8 million on October 14, 2020. Francisco Guzmán of Carey y Cía. Ltda. acted as the legal advisor to Algonquin Power & Utilities Corp. Fernando Bravo, José Pascual and Nicolás Yuraszeck of Prieto y Cia acted as the legal advisor to Aguas Andinas.
Aguas Andinas SA is a Chile-based company engaged in the provision of sanitation services. The Company operates in two business segments: Water and Non-water. The Water division provides services related to the distribution and supply of drinking water, as well as the collection and treatment of sewage water. The Non-water division includes services related to environmental analysis, industrial waste treatment, engineering services, as well as distribution of equipment for sanitation and energy projects. The Company operates through a number of subsidiaries, such as Aguas Cordillera SA, Aguas del Maipo SA, Essal SA, Gestion y Servicios SA and EcoRiles SA. The Company is indirectly controlled by Suez SA through Inversiones Aguas Metropolitanas SA.
Algonquin Power & Utilities Corp. completed the acquisition of an additional 40.5% stake in ESSAL S.A. from Aguas Andinas S.A. (SNSE: AGUAS-A) and other shareholders for $69.8 million.
AGUAS ANDINAS S.A. 
