Enel analyses combining conventional and renewable assets in Chile

Enel SpA's (BIT:ENEL) subsidiary Enel Chile SA has unveiled a proposal to reorganise the Italian energy company's shareholdings in Chile and bring together its conventional and renewable generation assets.

The plan includes the integration into Enel Chile of the Chilean renewable assets held by Enel Green Power Latin America Ltda. The proposed merger is conditional on Enel Chile carrying out a successful tender offer for the shares in Enel Generacion Chile SA held by minority shareholders. The offer would be successful if Enel Chile lifts its stake in Enel Generacion Chile to over 75% from 60% now. The price would be a mixture of cash and shares that would be issued by Enel Chile through a capital increase.

Enel said it has given a favourable preliminary opinion about the reorganisation proposal accompanied with several conditions including that upon completion Enel keeps a holding in Enel Chile similar to its current stake of 60.6%.

Enel Chile said that as a result of the transaction all of Enel's power generation assets in Chile, conventional and non-conventional renewable, would be further developed by Enel Chile through its affiliates.

"The purpose of this operation is to consolidate Enel Chile’s leadership in the national electric power generation industry, as the most competitive and diversified company in the market," said Enel Chile president Herman Chadwick.

EGP Chile currently operates 1.2 GW of plants, including 564 MW of wind facilities, 492 MW of solar and 92 MW of hydroelectric capacity. In addition, it has begun generation at the 48-MW Cerro Pabellon geothermal plant. Enel Generacion Chile, meanwhile, operates 6,351 MW of power capacity, 54% of which is hydroelectric, 44% thermal and 2% wind.

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