SGCC, CSG participate in early bidding for Transelec SA

The State Grid Corporation of China ( SGCC) and China Southern Power Grid Co ( CSG) have participated in the early bidding for Chile- based firm Transelec SA in deals that could be worth about $ 1 billion, the Bloomberg reported over the weekend, citing sources familiar with the matter.

The two State- owned enterprises are bidding for 27.7 percent shares in the power transmission company that is being sold by Toronto- based investment fund Brookfield Asset Manage- ment Inc, the report cited anonymous source as saying.

There are also other investors submitting non- binding off ers to the asset manager for the deal.

Brookfield, along with other investors, bought the Chile- based firm in 2006 for about $ 1.7 billion, according to media reports.

The four companies involved in the deal – SGCC, CSG, Transelec SA and Brookfield Asset Management – have all not responded to the Bloomberg’s request for comment or refused to comment as of press time.

Transelec SA was founded in 1943 and is based in Santiago.

The company supplies high voltage system to cities and industries and mining users in Chile. It currently operates 57 substations and 10,000 kilometers of power transmission line in the country, according to a statement on its website.

Under the Belt and Road initiative, SGCC has been actively looking for overseas assets in recent years.

The company’s foreign assets are now valued at $ 56 billion across seven countries, the company’s chair- man Shu Yinbiao said at a forum of Summer Davos in Dalian, Northeast China’s Liaoning Province, news website sina. com reported.

In June, SGCC announced that it has completed the purchase of a 24 percent stake in Greece’s power grid operator, ADMIE, the Xinhua News Agency reported.