OAKVILLE, Ont. — Algonquin Power and Utilities Corp. has signed a deal to buy a majority stake in a water utility in Chile for US$92.3 million (C$121.5 million).

The Ontario-based company says the agreement would see it acquire a 53.5 per cent 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.

This report by The Canadian Press was first published Sept. 11, 2020.

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