IFM agrees sale of Pacific Hydro to China's SPIC

The acquisition price was not disclosed but local media put it more than A$2 billion ($1.4 billion). Pacific Hydro has 900 megawatts of capacity across 19 hydroelectric and wind generation facilities in Australia, Brazil and Chile. It also offers retail electricity products to residential and commercial clients in Australia.

IFM acquired the asset in 2006 through the IFM Australian Infrastructure Fund. Incoming owner SPIC said in a statement that it is committed to supporting the expansion of Pacific Hydro's project pipeline.

Formed through the merger of China Power Investment Corporation and State Nuclear Power Technology Corporation, SPIC has total assets of $113 billion and installed capacity in excess of 100 gigawatts. In addition to power generation, it is active in coal, aluminum, logistics, financial services, environmental protection and high tech, with a presence in 35 countries and territories.

IFM, which is owned by a group of 30 Australian superannuation funds, has A$64.5 billion in assets under management, representing more than 150 global institutional investors. It has A$30 billion in infrastructure.

The transaction is expected to close in the first quarter of 2016. SPIC was advised by Santander and King & Wood Mallesons, while IFM worked with Credit Suisse, Merrill Lynch and Herbert Smith Freehills.

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• Topics
• Infrastructure
• Infrastructure
• Cleantech
• Exits
• Australasia
• Greater China
• Infrastructure
• Cleantech
• Exit
• Trade sale
• Industry Funds Management
• China