REN acquires electricity transmission company in Chile for us$ 71.4 million

REN has signed an agreement with CMPC, one of the largest industrial groups in the forestry and pulp and paper sector in Latin America, for the acquisition of 100% of the company Transmisora de Energía Nacimiento S.A. (“TENSA”), for a total amount of US$ 71.4 million.

TENSA is a Chilean company that owns and operates approximately 190 km of electricity transmission lines, mostly located in the Central-Southern region of Chile. The assets were originally developed to serve CMPC group’s industrial facilities and have, for the most part, been reclassified as regulated assets as part of the ongoing tariff review process for the 2024–2027 period.

The transaction adheres to the strict financial discipline that guides REN’s operations, ensuring sustained profitability and the preservation of credit metrics compatible with maintaining an investment grade rating.

While Portugal remains REN’s main geographical focus, Chile was the country selected for cross-border investments in 2017. In Chile, REN is a shareholder in Electrogas (42.5%), which owns and operates a 166 km gas pipeline between Valparaíso and the capital, Santiago, and is the sole shareholder of Transemel.

This subsidiary in Chile is active in the electricity transmission segment and, with this acquisition, will operate approximately 280 km of transmission lines in the country, as well as 5 substations.

The transaction aligns with REN’s strategic plan, which, in addition to an organic growth strategy in Chile, includes selective acquisitions of operational assets of appropriate size and with a risk-return profile aligned with REN’s prudent investment principles and within its area of technical expertise.