Enel Americas SA (NYSE:ENIA) shareholders have voted in favour of the company’s proposal to merge with the South and Central American renewable energy business of Enel Green Power (EGP).
The deal will enable the Santiago-based electricity generator and distributor to absorb EGP’s non-conventional renewable energy operations in Argentina, Brazil, Colombia, Peru, Costa Rica, Guatemala and Panama, but not Chile.
Following the merger, seen to be completed in the first half of 2021, Enel Americas will increase its total installed capacity in the region to 16.3 GW from 11.3 GW, given 5 GW of EGP’s assets. Enel Americas estimates it will have 7.8 GW of non-conventional renewables by 2024, it said in the press release.
The extraordinary shareholders’ meeting on Friday also approved to modify the by-laws of Enel Americas to eliminate existing limitations whereby a single shareholder cannot hold more than 65% of the voting rights.
Also, opposing shareholders can choose to reduce their stake and sell back their shares to Enel Americas for CLP 109.79 (USD 0.151/EUR 0.123), Enel Americas said in a securities filing. If more than 10% of the shares with voting rights are sold in this process, the proposed merger would not move forward.
Ahead of the shareholders' meeting, Italian parent company Enel SpA (BIT:ENEL) offered to pay CLP 140 per share, or the USD-equivalent for American Depositary Shares (ADS), to dissenting shareholders. The offer is valid for up to 10% of Enel Americas’ total share capital, but it will not go forward unless Enel Americas absorbs EGP and changes its by-laws by December 31, 2021, according to a note sent to the Santiago stock exchange.
Enel Americas, though subsidiaries, operates in Argentina, Brazil, Colombia and Peru as a power generation, transmission and distribution company. The merger with EGP would allow Enel Americas to spread to Central America in pursuit for opportunities in the renewable energy business, the company said.
(CLP 100 = USD 0.137/EUR 0.112)
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