By Graciela Ibanez
Enersis SA's (ENI, ENERSIS.SN) shares continued to fall on the
Santiago Stock Exchange Friday as investors remain concerned about
the Chilean energy holding company's plans for a $8.02 billion
capital increase.
Enersis shares dropped 6% in early trading to 152.91 Chilean
pesos (32 cents), while shares of Chilean power producer Empresa
Nacional de Electricidad SA (EOC, ENDESA.SN), which is controlled
by Enersis, declined 2% to CLP798.00, dragging the select IPSA
index down 0.6%.
These two companies together have a weighting of about 12% on
the blue-chip index.
Enersis' share price tumbled 13% Thursday.
Under the capital increase, Enersis' controlling shareholder,
Spain's Endesa SA (ELEZY, ELE.MC), would subscribe using $4.86
billion in noncash assets such as stakes in companies. The
remaining $3.16 billion would be raised on the local market. Endesa
has a 60.62% stake in Enersis.
Investors remain worried about the lack of clarity over the use
of proceeds and Endesa's valuation of its Latin American
assets--$4.86 billion--which many analysts deemed to be
overstated.
Local pension-fund manager AFP Habitat, one of Enersis' minority
shareholders, publicly rejected the capital increase and said it is
considering doing its own valuation of Endesa's assets in Latin
America.
The deal requires approval from two thirds of Enersis' existing
voting shares.
Enersis has operations in Chile, Argentina, Colombia, Peru and
Brazil.
Write to Graciela Ibanez at graciela.ibanez@dowjones.com
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