Teachers’ has announced it will participate in an auction later this week for larger stakes in two Chilean water utilities in which it currently owns majority positions.
The current members of the controlling group in Essbio S.A. and Esval S.A. intend to purchase all of the shares being offered by CORFO, a Chilean government agency, in an auction scheduled for July 15. Teachers’ currently owns approximately 51.1% of Essbio and 69.8% of Esval and is a member of the controlling group.
After the auction process, the government of Chile will retain a 5% stake in each of the utilities, enabling it to veto issues such as water rights transfers and utilities concessions. The utilities operate the infrastructure that treats and delivers clean drinking water, takes away wastewater and treats sewage.