By Graciela Ibanez
Chilean power generator Empresa Nacional de Electricidad SA
(EOC, ENDESA.SN) and energy holding company Enersis SA's (ENI,
ENERSIS.SN) shares jumped on Monday after both companies'
controlling shareholder reached an agreement with Chile's largest
institutional investors over a disputed Enersis capital
increase.
Endesa was recently 1.1% higher at 745.00 pesos ($1.56) and
Enersis was 2.8% higher at CLP172.00, while the select IPSA index
was 0.13% higher.
In July, Enersis announced a capital increase in which its
controlling shareholder, the Spanish company also known as Endesa
SA (ELEZY, ELE.MC), would subscribe with noncash assets such as
stakes in Latin American companies, while the remaining
shareholders would subscribe with cash.
Chile's largest institutional investors, private pension-fund
managers, or AFPs, fiercely opposed the deal until last week when
they reached an agreement with the Spanish utility over the size of
the deal.
Spanish Endesa, which has a 60.62% stake in Enersis, reduced the
transaction's size to $5.96 billion from the initial $8.02 billion
and will offer 16.44 billion shares at CLP173 each. It also valued
the assets it will subscribe at $3.62 billion, while minority
shareholders will contribute with $2.34 billion in cash.
Enersis, which controls Chilean Endesa, called for a
shareholders meeting on Dec. 14 to discuss the structure and size
of the deal and will hold a second meeting on Dec. 20 to vote on
the transaction.
In the past 52 weeks, Enersis has traded at a high of CLP203.45
and a low of CLP151.81 while Chilean Endesa has traded at a high of
CLP894.00 and a low of CLP713.88.
Write to Graciela Ibanez at graciela.ibanez@dowjones.com