ROME (dpa-AFX) - Italian utility Enel S.p.A. (NLAY.PK, EN) Thursday revealed an offer it made to acquire the 60.62 percent interest held directly and indirectly by Endesa S.A. in the Chilean company Enersis S.A., the parent company for the group's operations in Latin America.
The total purchase price comes to 8.253 billion euros ($10.7 billion) based upon an implicit price of 215.0 Chilean pesos for Enersis shares and net of Endesa Latinoamérica's structural costs and net liabilities that equal to 144 million euros.
The stakes to be acquired are 20.30 percent of Enersis held directly by Endesa, and 100 percent of Endesa Latinoamérica S.A., which in turn holds 40.32 percent of Enersis.
The presentation was made to Endesa by Enel Energy Europe S.L. or EEE, a company wholly-owned by Enel and which in turn holds 92.06 percent of Endesa.
Along with the acquisitions, EEE proposes that Endesa distribute an extraordinary cash dividend, equal to the consideration received by Endesa for the sale of 60.62 percent of Enersis.
The transactions are expected to be completed during the last quarter of 2014.
Enel plans to focus the operations of Endesa as the leading company in the Iberian energy market, through a new business plan focused on the development of existing business platforms.
The firm also wants to emphasize on the competitiveness from operations in Spain and Portugal.
'...following Endesa's Board approval of the EEE proposals, Enel's Board of Directors will carry out a possible review of the related dividend policy, as well as assessing the possibility of undertaking capital market transactions, depending on market conditions, to add further value to EEE's holding in Endesa and resolve the stock's current lack of liquidity,' the firm said.
The stock closed in Milan at 4.20 euros on Thursday.
Copyright RTT News/dpa-AFX