Natural Gas will pay 2,600 million for Chilean electricity giant – La Voz de Galicia

Natural Gas will pay 2,600 million for Chilean electricity giant – La Voz de Galicia

Gas Natural Fenosa has agreed to purchase the General Electric Company (GEC), first electricity and gas distributor in Chile, for approximately 2,600 million euros. The operation is preceded by an agreement with the controlling shareholders of the Latin American company, which agreed to sell 54.19% stake in controlling the time that the Spanish firm launches a takeover bid for 100% of the shares .

The company headed by Salvador Gabarró and addresses “the largest international purchasing operation” of its history, as explained in the relevant fact sent yesterday to the National Securities Market Commission ( CNMV). Also be “the biggest purchase of a utility in Latin America,” he adds. The offer provides for payment in cash of 4,700 Chilean pesos per share, implying an outlay of 2,600 million euros. The total size of the purchase, including the consolidated debt of CGE and minority interest of subsidiaries amounted to 6,000 million euros and is expected to close during the second half of November. The first step at the start of the operation was the contract signed by Natural Gas and the majority shareholders of Chilean society

For Natural Gas, this purchase represents “a key strategic milestone” and allowing you to enter the energy market in Chile through the main business of distribution of electricity and gas in the country. CGE has over 2.5 million customers and distributes electricity to 40% of the Chilean market, including part of the capital, Santiago de Chile. It is also the first network operator high voltage, with a market share of 35% and more than 3,400 kilometers of lines also present in the gas business: has a direct involvement in Gasco, one of the three major distributors Liquefied Propane Gas (LPG) with a 27% market share, and the main operator in the country, Metrogas, serving over 580,000 customers.

Strengths

Ebitda (gross operating profit) of CGE in the year 2013 amounted to 743 million dollars (588 million euros), of which 96 % are active in the Chilean energy market (also present in Argentina and Colombia). Gas Natural Fenosa notes that, with the acquisition of CGE, will be in the energy business “in seven of the nine largest cities in Latin America and in the top five mainland capitals [Bogotá, Buenos Aires, Mexico City, Rio de Janeiro and Santiago of Chile]. “

2.5 million