Weil Gotshal Represents ConsortiumIn Acquisition

Saturday, July 1, 2006 - 01:00

Weil, Gotshal & Manges LLP advised a consortium led by Brookfield Asset Management Inc., which includes Canada Pension Plan Investment Board, British Columbia Investment Management Corporation and another institutional investor, in its agreement to acquire 92 percent of the shares of HQI Transelec Chile S.A. (Transelec), the largest electricity transmission company in Chile, from Hydro-Quebec International for $1.55 billion. The consortium has taken steps to acquire the remaining 8 percent of Transelec in a separate, but contemporaneous transaction.

Transelec's assets serve as the backbone of the Chilean electricity sector. Transelec owns more than 8,000 kilometers of transmission lines and 51 power substations, and its assets deliver electricity to approximately 99 percent of the Chilean population through various local distribution companies.

The closing of the transaction was scheduled for July 5, with completion of the transaction subject to customary conditions.There are no regulatory approvals required to proceed with the transaction.

Brookfield is a 100-year-old Canadian company focused on power, real estate and other infrastructure assets. Brookfield has approximately $50 billion of assets under management located in Canada, U.S., South America and Europe.

Weil Gotshal's team included partners S. Wade Angus, Simeon Gold, J. Philip Rosen and Elaine Stangland, and associates Nicholas Rodriguez, Mona Al-Sharmani and Alfredo Simn Jr.