Enel minorities in Chile want to block Eletropaulo buy - report

Image via Flickr/Joe Gratz (CC0 1.0)

May 24 (Renewables Now) - The Chilean minority shareholders of Enel SpA’s (BIT:ENEL) unit in the Americas have declared themselves against a proposed takeover of Brazilian power distributor Eletropaulo (BVMF:ELPL3), Reuters reports.

The said shareholders have hired a lawyer to prepare for a possible legal complaint. The lawyer, Barbara Salinas, told the news agency that her clients are not happy with the idea of Enel Americas financing the potential transaction in Brazil. The attorney was quoted as saying that they are ready to use all tools to prevent this acquisition from happening.

The Italian group, through Enel Brasil Investimentos Sudeste SA, is offering BRL 32.2 per Eletropaulo share, which could translate into a total transaction value of up to BRL 5.4 billion (USD 1.48bn/EUR 1.26bn).

The Chilean minority shareholders are of the view that the value is too high. They have filed complaints with Enel’s management and Chilean stock market regulator CMF, and while the former has responded, not to their full satisfaction, a reaction from CMF is still pending, Reuters said.

Enel is competing for the ownership of Brazil’s largest power distributor with Neoenergia SA, which is a subsidiary of Spain’s Iberdrola SA (BME:IBE). Neoenergia’s latest offer is BRL 32.1 apiece. Today is the last day the two can sweeten their bids. An auction for Eletropaulo is scheduled for June 4.

(BRL 1.0 = USD 0.274/EUR 0.234)

More stories to explore
Share this story
About the author
Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription