Chilean utility Colbun SA has entered into an agreement to acquire a 100% stake in Inversiones Latin America Power SpA (ILAP) and take over its 239-MW operational wind farm portfolio in Chile.

ILAP, a Chilean renewables company, owns and operates the 193-MW San Juan wind farm in the Atacama region and the 46-MW Totoral wind farm in Coquimbo. These wind farms are held by ILAP’s entities San Juan SA and Norvind SA.

Colbun said on Friday the initial purchase price was set at USD 401 million (EUR 373.2m), subject to adjustments at closing. The transaction requires the approval of the Chilean antitrust authority.

The acquisition will strengthen Colbun's presence in the northern regions of Chile, where it already operates the Diego de Almagro Sur solar and battery farm and is finalising the construction of the Horizonte wind farm, the utility said.

ILAP successfully completed the Chapter 11 restructuring in the US Bankruptcy Court in early January 2024, exchanging with its creditors more than USD 430 million of existing senior debt for new take-back senior secured notes and convertible notes, while certain creditors provided exit financing.

The restructuring helped ILAP deal with its debt burden piled up amid challenges in the Chilean energy market in recent years, attributed in part to transmission grid congestion and other factors, which led to the decoupling effect in the spot market. The sale of ILAP was foreseen as part of the arrangement.

The financial condition of ILAP was not disclosed in Colbun’s announcement.