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Non-Tech : Brookfield Asset Management -- Ignore unavailable to you. Want to Upgrade?

To: Copperfield who wrote (27)	6/16/2006 12:14:33 PM
From: JakeStraw	Respond to of 75

Brookfield Consortium Agrees to Acquire Transelec, Chile's Leading Transmission Company biz.yahoo.com Friday June 16, 11:10 am ET TORONTO, ONTARIO--(MARKET WIRE)--Jun 16, 2006 -- Brookfield Asset Management Inc. (TSX:BAM.TO)(NYSE:BAM) ("Brookfield") today announced that a consortium led by Brookfield, which includes Canada Pension Plan Investment Board ("CPP Investment Board"), British Columbia Investment Management Corporation ("bcIMC") and another institutional investor, has entered into a definitive agreement to acquire in Chile 92% of the shares of HQI Transelec Chile S.A. ("Transelec"), the largest electricity transmission company in Chile, from Hydro-Quebec International Inc. for US$1.55 billion. The consortium has taken steps to acquire the remaining 8% of Transelec in a separate, but contemporaneous transaction. Transelec's assets serve as the backbone of the Chilean electricity sector. Transelec owns over 8,000 kilometres 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. Jeff Blidner, Brookfield's Managing Partner of Infrastructure, said: "We are proud to have been chosen as the successful bidder to acquire this great company. We have significant experience in operating electric power companies in North and South America and believe that this experience will assist Transelec to maintain its position as a key player in addressing the opportunities that lie ahead in Chile's electric sector. We look forward to working with Transelec's local management team to grow Transelec's asset base. We are also pleased to be partnering on this transaction with leading infrastructure investors who share a common approach to the long-term ownership and local operation of this major Chilean company." "This is a unique core infrastructure asset in a stable and attractive country," said Mark Wiseman, Vice-President - Private Investments for the CPP Investment Board. "We have made a commitment of up to US$350 million which is our largest infrastructure investment to date and a milestone in the development of our infrastructure investment program." "Transelec is a long-term asset that will generate strong cash flows that are ideally suited to our clients' long-term objectives," said Lincoln Webb, Vice President Private Placements, at bcIMC. "This investment complements our infrastructure portfolio and we are pleased to enter into this partnership that will work to meet the growing demand for electricity in Chile." The purchase price is subject to adjustment in accordance with the terms of the agreement and is payable in cash on closing. The equity required for the transaction will be provided by the members of the Brookfield consortium. Brookfield will be responsible for funding approximately 30% of the required equity and with its significant assets and expertise in the power sector, Brookfield will provide advice and assistance to the consortium under a long-term advisory contract. Scotia Capital and HSBC Bank have agreed to provide US$600 million in debt financing in connection with the acquisition. The Brookfield consortium is being assisted on this transaction by Philippi, Yrarrazaval, Pulido & Brunner, Weil Gotshal & Manges LLP and Stikeman Elliott LLP, as legal advisors; PricewaterhouseCoopers LLP, as tax and accounting advisors; and HSBC Securities (Canada) and Scotia Capital, as financial advisors. The closing of the transaction is scheduled for July 5, 2006 with completion of the transaction subject to customary conditions. There are no regulatory approvals required to proceed with the transaction.