May 10, 2021
Ontario Teachers’ Pension Plan Board to Acquire Evoltz from TPG
TORONTO, CANADA AND SAO PAULO, BRAZIL (May 10, 2021): Ontario Teachers' Pension Plan Board ("Ontario Teachers’") is pleased to announce that it has entered into a definitive agreement with TPG, a global alternative asset firm, to acquire a 100 percent interest in Evoltz Participações S.A. (“Evoltz”), a leading electricity transmission platform in Brazil. Founded by TPG in 2018, Evoltz consists of seven electricity transmission lines that total more than 3,500km across 10 states in Brazil.
“Evoltz is a highly attractive portfolio of power transmission concessions that provides reliable power to businesses and consumers across Brazil,” said Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources at Ontario Teachers’. “Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows. Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.”
Ontario Teachers’ has extensive experience investing in regulated electricity transmission and distribution businesses, as well as the broader energy sector. Earlier this year, Ontario Teachers’ acquired a 40 percent stake in Caruna, Finland’s largest electricity distribution company. It has been active in Chile’s transmission and distribution sector for over 12 years through a 50% stake in Saesa. The acquisition of Evoltz represents a significant infrastructure investment adding to Ontario Teachers’ portfolio of high-quality investments in Brazil and across Latin America.
“Since founding Evoltz three years ago with the acquisition of seven transmission assets from judicial recovery, we have been proud to work with management to turn-around the prospects for Evoltz and establish it as a leading independent operator in Brazil’s energy transmission sector,” said Edward Beckley, Partner at TPG. “Today, having expanded and consolidated its operations, Evoltz plays an important role in delivering green, renewable energy to major cities and population centers across the country. We look forward to its next chapter under Ontario Teachers’ leadership.”
“I would like to take this opportunity to thank TPG, our board of directors, and employees for the hard work and support in building and transforming Evoltz into a leading operational electricity transmission company,” said João Nogueira Batista, CEO of Evoltz. “We are pleased to welcome Ontario Teachers’ as our new shareholder and are excited to work with them to drive the company to new heights.”
The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions and regulatory approvals.
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