Guo Aibing – Bloomberg, 05/30/2012
China’s State Grid International Development Ltd. bought seven power transmission lines in Brazilfor 751.7 million euros ($936 million) to expand in Latin America’s biggest economy.
An agreement was signed with Spain’s ACS Actividades de Construccion & Servicios SA on May 26, according to a statement posted yesterday on the website of the unit of State Grid Corp. of China. ACS units Area Industrial, Cobra, Cymi and CME will sell the lines for an enterprise value, comprising 423.4 million euros in equity and 328.3 million euros in debt, the Madrid- based company said in a statement May 28.
ACS is selling assets to pay debt as orders waned for Spanish builders following government spending cuts on infrastructure. The diminishing fortunes of debt-laden European companies are providing State Grid an opportunity to secure targets at discounted valuations. State Grid in January bought 25 percent of Portugal’s national power grid company Redes Energéticas Nacionais.