China's State Power Buys Clean-Energy Unit From IFM Investors

  • Pacific Hydro has 19 facilities in Chile, Australia, Brazil
  • Deal is expected to be completed in first quarter 2016

State Power Investment Corp. of China agreed to acquire Pacific Hydro Pty, a renewable energy company with assets in Australia, Chile and Brazil, from IFM Investors Pty.

Pacific Hydro has 19 hydro-electric and wind assets with capacity of 900 megawatts, IFM and State Power said in a statement Wednesday. State Power has $113 billion in assets across sectors including power generation, coal and finance, according to the statement.

State Power “is committed to maintaining the stability of Pacific Hydro’s current business and management team, as well as supporting expansion through the pipeline of development projects,” the company said.

The unit is being sold for more than A$3 billion ($2.2 billion), including debt, the Australian Financial Review reported, without saying where it got the information.

The deal is expected to be completed in the first quarter of 2016. State Power was advised by Santander Global Corporate Banking and King & Wood Mallesons while IFM Investors was advised by Credit Suisse Group AG, Bank of America Corp. and Herbert Smith Freehills LLP, according to the statement.