Canadian company Algonquin Power & Utilities Corp (APUC) sold approximately 30% of its shares in Empresa de Servicios Sanitarios de Los Lagos SA (ESSAL), a publicly traded Chilean water utility, to Toesca Infraestructura II Investment Fund for an undisclosed amount. The transaction closed on December 21 and would involve the participation of a local partner in the ownership of the utility.
The Chilean firm Carey, with a team led by partners Francisco Guzmán, Claudio Lizana, and Cristián Eyzaguirre, represented the seller. Their advisory services included the negotiation and preparation of various documents, including a share purchase agreement and a shareholders' agreement.
Claro & Cia supported the buyer, with a team headed by Matías De Marchena and Juan León.
This is the latest transaction involving ESSAL, which Algonquin acquired control of after a competitive bidding process in which it purchased the majority stake from Aguas Andinas (53.51%). Algonquin then launched a Public Tender Offer (PTO) for the remaining shares (42.96%), a process that allowed it to reach a 93.96% stake in ESSAL.
ESSAL produces and distributes drinking water and collects and treats wastewater. The company serves more than 633,000 customers in the Los Lagos and Los Ríos regions of southern Chile.
Legal Advisors
Advisors to Algonquin Power & Utilities Corp:
- Carey: Partners Francisco Guzmán, Claudio Lizana and Cristián Eyzaguirre. Associates Andrés Latorre, Benjamín Sáa, Daniela León and Enzo Devoto.
Advisors to Toesca Infrastructure II Investment Fund:
- Claro & Cia: Partners Matías De Marchena and Juan León.
