Transelec Chile: Hydro-Quebec sells its stake for $1.7 billion

Jun 16, 2006, 01:00 ET from HYDRO-QUEBEC

    MONTREAL, June 16 /PRNewswire/ - Hydro-Quebec, through its wholly owned
 subsidiary Hydro-Quebec International Inc., is announcing that, after an
 international bidding process, it has reached an agreement to sell its 92%
 stake in Transelec Chile S.A. for C$1.7 billion to a consortium led by
 Canadian investment firm Brookfield and made up of various Canadian
 institutional investors. Brookfield has a well recognized expertise in real
 estate, infrastructure and power generation. The parties expect to close
 the transaction on July 5, 2006.
     "We are very pleased with this major transaction, which will bring us a
 profit of over $750 million," said Daniel Garant, Executive Vice President
 - Finance and Chief Financial Officer of Hydro-Quebec and President and
 Chief Executive Officer of Hydro-Quebec International.
     Transelec Chile S.A., a major transmission provider, delivers
 electricity to approximately 99% of the Chilean population through local
 distribution companies. Its transmission system includes 8,300 kilometres
 of lines and 51 substations. The remaining 8% of Transelec is owned by the
 International Finance Corporation, a subsidiary of the World Bank.
     "This is our crowning achievement in terms of monetizing our
 international assets," added Mr. Garant.
     Hydro-Quebec wishes to thank Transelec's management and employees for
 their excellent cooperation over the past six years.