TORONTO, June 16 (Reuters) -

IPPBC member Brookfield Asset Management Inc is leading a consortium in buying 92 percent of Chile's largest electricity-transmission company from Hydro-Quebec for C$1.7 billion ($1.5 billion), the parties said on Friday.

The Brookfield consortium, which also includes the Canada Pension Plan Board, the British Columbia Investment Management Corp. and another institution, is also moving to buy the remaining 8 percent of HQI Transelec Chile SA in a separate transaction, the group said. A subsidiary of the World Bank owns that stake.

Hydro-Quebec said in a statement that the sale will bring it a profit of more than C$750 million.

"This is our crowning achievement in terms of monetizing our international assets," Daniel Garant, Hydro-Quebec's chief financial officer, said in a statement.

Transelec owns more than 8,000 kilometres (5,000 miles) of transmission lines and 51 power substations, delivering electricity to virtually all of Chile's population of 16 million.

Scotia Capital and HSBC Bank are providing $600 million in debt financing as part of the purchase.

From RTTNews:

Toronto, Ontario-based Brookfield expects the transaction to close on July 5.

Transelec is the largest electricity transmission company in Chile and is the backbone of the Chilean electricity sector. Transelec's assets deliver electricity to approximately 99% of the Chilean population through local distribution companies. It owns over 8,000 kilometres of transmission lines and has 51 power substations.

The company said purchase price of the transaction is subject to adjustment in accordance with the terms of the agreement. Members of the Brookfield consortium will be paying the equity required, with Brookfield responsible for funding approximately 30% of it.

Brookfield, with an experience of 100 years and assets worth C$50 billion, will also provide advice and assistance to the consortium under a long-term advisory contract. The company said Scotia Capital and HSBC Bank have agreed to provide $600 million in debt financing. No regulatory approvals are required to proceed with the transaction. Philippi, Yrarrazaval, Pulido & Brunner, Weil Gotshal & Manges LLP and Stikeman Elliott LLP will be the legal advisors for the company in this transaction, while PricewaterhouseCoopers LLP will be the tax and accounting advisors. HSBC Securities (Canada) and Scotia Capital are the financial advisors.

The deal is expected to bring to Hydro-Québec International a profit of over $750 million. "This is our crowning achievement in terms of monetizing our international assets," felt Daniel Garant, Executive Vice President - Finance and Chief Financial Officer of Hydro-Québec and President and Chief Executive Officer of Hydro-Québec International.

Commenting on the acquisition, Jeff Blidner, Brookfield's Managing Partner of Infrastructure, said: "We have significant experience in operating electric power companies in North and South America and believe that this experience will assist Transelec to maintain its position as a key player in addressing the opportunities that lie ahead in Chile's electric sector. We look forward to working with Transelec's local management team to grow Transelec's asset base."

Mark Wiseman, Vice-President - Private Investments for the CPP Investment Board, said the firm has made a commitment of up to $350 million. "This is our largest infrastructure investment to date and a milestone in the development of our infrastructure investment program," he said.

Lincoln Webb, Vice President Private Placements, at bcIMC, sees Transelec as a long-term asset that will generate strong cash flows. "This investment complements our infrastructure portfolio and we are pleased to enter into this partnership that will work to meet the growing demand for electricity in Chile," he commented.

Brookfield has been aggressively trying to improve its efficiency and reach in the power sector in the recent past. On January 11, the company said it agreed to buy two hydroelectric generating facilities from Rumford Falls Power Company, owned by NewPage Corporation, for $144 million. On January 20, the company said it signed an agreement with the shareholders of privately-owned Beaver Power Corp. to acquire the company and its four hydroelectric generating facilities in Northern Ontario for an undisclosed purchase price. Brookfield, formerly known as Brascan Corp., reported an impressive first quarter results on April 28. The company's net income rose to $179 million or $0.43 per share from $165 million or $0.39 per share for the same period last year. Operating cash flow nearly doubled to $307 million or $0.75 per share from $155 million or $0.37 per share in the prior-year period.