[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

dam-l ENERSIS BOARD SEEKS SALE OF ENDESA STAKE



CHIP News
December 21, 1998

 Sources: EL MERCURIO; EL DIARIO

ENERSIS BOARD SEEKS SALE OF ENDESA STAKE

The board of electricity-sector holding company Enersis has voted to sell
its 25.28 percent stake in power generator Endesa, in part to focus on its
power distribution assets. The decision, which Enersis shareholders will
vote on at a special Feb. 4 meeting, stemmed from recommendations of a
study carried out by investment bank Morgan Stanley on the merits of a
possible sale. If shareholders approve the move, Enersis would likely sell
the stake through a private bid. Sector sources have named Endesa of Spain
as a possible buyer of the stake in the Chilean firm, which shares the same
name.

Meanwhile, reports said Enersis is studying participation in some US$5.95
billion in planned privatizations of state-owned power distributors
throughout South America through 2000. Funding for any buys would come in
part through funding generated by the sale of the stake, if  approved.

The firm is also reportedly looking into planned privatizations of water
utility firms in Chile, Argentina, Brazil and Panama Four Enersis board
members voted in favor of the sale while three more, who charged they
hadn't received enough information on the proposal, abstained.

Stock of both Enersis and Chile's Endesa, both bluechips, gained last week
on rumors of such a move, pushing an overall 5.65 percent gain in the
Santiago Stock Exchange's IPSA select stock index for the week.

Chile Information Project


//\\//\\//\\//\\//\\//\\//\\//\\//\\//\\
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Aleta Brown
International Rivers Network
1847 Berkeley Way
Berkeley, CA 94703 USA
Phone: 1.510.848.1155
Fax: 1.510.848.1008
email: aleta@irn.org
http://www.irn.org