Italian oil and gas company Enel has agreed to divest its 99.09% stake in Enel Transmisión Chile to Sociedad Transmisora Metropolitana (STM) and its controlling company Inversiones Grupo Saesa for a $1.34bn equity consideration.

For this deal, Inversiones Grupo Saesa is serving as a guarantor.

Once the deal received the approval of Chile’s antitrust authority Fiscalía Nacional Económica (FNE), the transaction will be carried out as a full takeover bid.

According to the deal, STM will purchase the entire stake held by Enel Chile in Enel Transmisión Chile and also repay the latter’s intercompany loans.

Enel Transmisión Chile operates 683km of transmission lines and manages 60 substations in Santiago’s metropolitan region.

Out of 60 substations, 57 are owned by Enel Transmisión Chile while the other three are owned by third parties.

Part of Enel Group’s strategic plan, the divesture is expected to be completed by the end of this year.

As the second-largest electricity distributor in Chile, Inversiones Grupo Saesa supplies electricity to around 950,000 customers and operates 63,476km of distribution lines, 2,280km of transmission lines and 75 substations.

Equally owned by Ontario Teachers’ Pension Plan and Alberta Investment Management Corporation, Inversiones Grupo Saesa owns 275MW in wind, hydropower, and diesel generation.

Last month, Enel agreed to sell its 56.43% stake in PJSC Enel Russia to local investors PJSC Lukoil and private fund Gazprombank-Frezia for €137m.

Enel also decided to divest all its Russian power generation assets.