Bloomberg News

Enersis Holders Approve $5.98 Billion Chilean Share Sale

December 20, 2012

Shareholders of Enersis SA (ENERSIS), the Latin American unit of Spain’s Endesa SA (ELE), approved the sale of 2.84 trillion pesos ($5.98 billion) of new shares, in what will be Chile’s biggest-ever capital increase.

Shareholders representing 86 percent of Enersis’ stock approved the sale of 16.4 billion new shares at 173 pesos each, in a meeting in Santiago today. The sale calls for Endesa to pay for its portion through the transfer of ownership of other Latin American assets valued at 1.72 trillion pesos. Minority holders will be required to pay cash for their stakes.

The value implies a 25 percent reduction from the $8 billion sale initially proposed by Endesa in July, which minority holders including Chile’s pension funds contested.

“The capital increase will unify all of Endesa’s Latin American assets under Enersis and fund Enersis’ expansion plans in the region,” Chairman Pablo Yrarrazaval said in prepared remarks at the shareholder meeting. “The board is convinced that the capital increase is strategically positive.”

The assets that Endesa plans to transfer to Enersis include direct and indirect stakes in power generators and distributors in Argentina, Chile, Brazil, Colombia and Peru.

Minority holders will be required to pay in cash for their part of the new shares and funds obtained will be used on mergers and acquisitions in the region, expansion projects and buying out minority holders in some Enersis units in the region, according to presentations posted on Enersis’ website.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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