Chile

Chile

Pattern sells Chile project stake

CHILE: US developer Pattern Energy has sold its Chilean operations, including the 70% stake it holds in the country's largest operational wind farm, to Texas-based Arroyo Energy Investors.

The 115MW El Arrayán project in Chile was completed in 2014
The 115MW El Arrayán project in Chile was completed in 2014

This story was first published on 24 May 2018 when Pattern Energy first announced the deal. It was updated on 21 August when it completed the deal.

Pattern's holdings in Chile included a 70% stake in the 115MW El Arrayán wind project (a net holding of 81MW), which is situated 400km north of Santiago.

It has now sold its Chilean interests to Arroyo Energy for which it received a cash consideration of $70.5 million before transaction-related expenses of approximately $2 million.

Mike Garland, CEO of Pattern Energy, had previously said the price would represent a "30% uplift over the El Arrayán's contribution to the company's current value".

Following the sale of the project, he added: "This is an excellent result that underscores the value of our portfolio and demonstrates a key part of our strategy, which is to recycle non-strategic holdings and use the capital to reinvest in accretive assets, repurchase stock or make other beneficial investments.

"Due to changes in the Chilean power market, we felt it was better for the company to focus on its core business areas and reduce overhead. We continue to see excellent growth opportunities in the United States, Canada, Mexico, and Japan."

Garland added that competition had increased in the Chilean market, creating fewer opportunities.

The four-year-old project uses 50 Siemens Gamesa SWT-2.3-101 turbines. It is the country’s largest operating wind project to-date.

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