Polaris Infrastructure acquires run-of-river hydro operator and developer in Peru
Geothermal operator and developer Polaris Infrastructure has announced the acquisition of an operator and developer of run-of-river hydro power projects in Peru, South America. With that the company diversifies its business adding hydro power to its geothermal activities in Nicaragua.
Canadian geothermal operator and developer Polaris Infrastructure Inc.,announces the closure of the acquisition of 100% of the issued and outstanding shares of Union Energy Group Corp. (“UEG”). UEG is an owner and developer of run-of-river hydro projects located in Peru.
As part of the UEG acquisition, Polaris Infrastructure has acquired the following assets:
- Canchayllo – a single 5 MW project in operation since 2015 (“Canchayllo”)
- Generación Andina – two projects in the late stages of construction totaling 28 MW of generating capacity (“Generación Andina projects”)
- Karpa – a single 20 MW project with a power purchase agreement (“PPA”) in place (“Karpa”), as well as;
- Portfolio of early stage development projects aggregating to approximately 189 MW
“We are very pleased to have completed this transaction” stated Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure, “which we expect will provide numerous benefits to the Company and its shareholders. Namely, the acquisition provides significant diversification of both asset class, by adding run-of-river hydro projects, and geography, by entering Peru. The Company expects to continue to grow its cash flow per share and leverage available cash resources on the balance sheet to fund capital requirements of the Generación Andina projects currently under construction. The combination of projects in operation and under construction, with long term PPAs in place, and a portfolio of early stage development projects, is very attractive. In addition, we expect that the current owner of UEG, Union Group International, led by Chairman, Juan Sartori, becoming long-term shareholders of Polaris Infrastructure will greatly improve our access to similar deal opportunities throughout Latin America.”
“I am very excited about closing the UEG Acquisition, as it provides a compelling value creation opportunity, as well as an important means of growing and diversifying our business,” stated Marc Murnaghan, CEO of the Company. “This acquisition leverages the capital on our balance sheet, our restructuring capabilities and our proven ability to execute at a project-level, while delivering strong cash flow generation. It also adds operations as well as a robust development pipeline in Peru, which we see as a very attractive jurisdiction. This geographic diversification benefit is further amplified by diversification of asset class, as we add a strong portfolio of hydro assets, which given a lifespan measured in decades, are expected to provide further stability to cash flow generation.”
For full details on the acquired projects and operations, see official full release linked below.
Source: Company release via Newswire