December 6 (Renewables Now) - Italian utility Enel SpA (BIT:ENEL) has entered into two share swap transactions with a unnamed financial institution to raise the stake in its Chile-based unit Enel Chile SA (NYSE: ENIC) by up to 3%.
Acquisition is expected to occur no later than the fourth quarter of 2020, the firm said on Thursday.
In order to increase its shareholding from the current 61.9%, Enel is planning to buy a little over 1.76 billion shares of Enel Chile's common stock plus about 6.2 million American depositary shares (ADSs), each of which represents 50 shares of common stock.
The number of shares and the amount to be paid in this transaction will rely mainly on the financial institution ability to establish its hedge positions with respect to the corresponding swap transactions. Under this deal, payment will be funded through internal cash flow generation.