CDC buys Entergy businesses

CDC Capital Partners has led a $135.3m investment in Latin America as the firm consolidates its investments in the region.

CDC Capital Partners, the UK-based risk capital investor in emerging markets, has announced details of the acquisition of Entergy Corp’s stakes in three power businesses in Latin America. CDC has invested $70m of the total value of $135.5m, with Scudder Latin American Power Fund II funding the remainder as co-investor.

The deal comprises Entergy Corp’s stakes in Edegel in Peru, together with the San Isidro IPP in Chile and the Costanera/CBA generation company in Argentina.  Edegel is CDC’s first investment in Peru and represents the largest portion of the transaction. CDC is in the process of restructuring its $300m power portfolio, invested across Latin America, Africa and Asia, into one international power company, currently called CDC Globeleq.

Bob Hart, the recently appointed chief executive officer of CDC Globeleq, said: “As well as being a significant investment in its own right, this is an excellent fit for our Latin America portfolio.  Current market conditions mean we are able to acquire good quality power assets, like these, at attractive prices.”

In Latin America, CDC has to date made investments in Nicaragua and the Dominican Republic. The businesses currently supply power totalling 3,685MW to the region, through a combination of hydro-electric and thermal power plants.