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.