REN acquired a 42.5% stake of Electrogas S.A owned by ENEL Generación Chile S.A, for USD 180,000,000. REN considers this an important step towards its internationalization, aligned with the company's Strategic Plan for 2015-2018.
Electrogas SA has 165.6 km of reversible gas pipelines operating in Chile, linking the Quintero / Valparaiso regasification terminal, located in one of Chile's most important seaports, to the capital Santiago, the largest population centre in the country. Natural gas is delivered to several electricity production plants, large industrial consumer companies, as well as natural gas distributors through this pipeline.
With this investment REN achieves one of its medium to long-term objectives, by acquiring a relevant stake in an asset of a sector where the company has extensive experience, and in a country with a stable and competitive economy.
REN's strong knowledge of the natural gas sector in Portugal was decisive to close this deal. REN is among the most efficient energy transmission system operators, with top ranking quality of service internationally.
This opportunity matched REN's financial discipline criteria, guaranteeing not only a sustainable profitability but also the maintenance of stable credit metrics, in line with the current investment grade ratings.
Although REN's strong commitment to its operation in Portugal, which remains the company's main market, this investment reflects the commitment of REN's management and Board of Directors with the development and sustainability of its activity, by diversifying geographies and leveraging the recognized know-how of its professionals.