PSR was the market advisor of Actis, a global investor focused on sustainable infrastructure, in its acquisition of Enel’s generation assets in Peru. The transaction involves the purchase of all equity stakes held by the Enel Group in power generation companies Enel Generación Perú S.A.A. and Compañía Energética Veracruz S.A.C through Actis’s controlled company Niagara Energy.

Under the agreement, Niagara Energy will acquire the stakes held by Enel Perú S.A.C and Enel Américas S.A. in Enel Generación Peru’s share capital (approximately 66.50% and 20.46%, respectively) and the ones held by Enel Perú in Compañía Energética Veracruz’s share capital (100%). The total consideration for this acquisition amounts to approximately $1.4 billion, reflecting an overall enterprise value of about $2.1 billion. The acquired portfolio comprises 2.4 GW of installed capacity from hydro, natural gas, and renewable plants – making it one of the largest of the Peruvian system.

The transaction is expected to close by the second quarter of 2024, subject to customary conditions precedent for such deals, including clearance from the competent Peruvian Antitrust authority. The sale of Enel Generación Perú’s stakes will be executed through a full takeover bid committed by Niagara Energy, contingent upon the satisfaction of conditions precedent specified in the agreement.

PSR provided regulatory support and conducted quantitative market forecasts to estimate the portfolio’s returns using its inhouse modeling tool SDDP, officially employed by Peruvian system operator COES in its long-term planning studies. The transaction underscores PSR’s expertise in providing comprehensive consulting services, combining regulatory advisory, quantitative analysis, and strategic guidance to facilitate successful investments in the energy sector.