Chinese consortium to acquire Odebrecht assets in Peru for $1.39 billion

Almaty. August 25. Silkroadnews – Chinese consortium will acquire Odebrecht assets in Peru for $1.39 billion, Reuters reported.
“A consortium led by China Three Gorges Corp [CYTGP.UL] has agreed to buy a hydroelectric plant in Peru from scandal-plagued Brazilian builder Odebrecht SA for $1.39 billion”, the report said.
It is noted that earlier Odebrecht announced the signing of an agreement to sell its 456-megawatt Chaglla plant in northern Peru to the Chinese consortium, though declined to tell the price.
The purchase of the plant was reported to be the first acquisition by China Three Gorges Corp, while Chinese companies’ presence in Latin America has been steadily growing.
The consortium also includes China’s Hubei Energy Group Co Ltd, which on Thursday said it would buy 40% of the subsidiary company Odebrecht that owns Chaglla for $277 million.
Hubei and China Three Gorges, one of the world’s largest producers of hydroelectric power declined to comment.
“Odebrecht is at the center of Latin America’s biggest graft scandal having admitted to paying bribes from Peru to Panama. It is trying to shrink its debt as it faces over $2.6 billion in fines and bans on bidding for government contracts in Peru and Argentina”, the agency wrote.
According to the publication, the Ministry of Justice of Peru and the Chinese regulatory authorities must approve the latest deal before it is finalized. The planned sale of other Odebrecht’s property in Peru, its irrigation company Olmos, was blocked by the court at the request of a special lawyer.
As reported, Odebrecht did not expect that the sale of other assets in Peru to be blocked, as the proceeds would help them pay a fine for corruption.