Enersis Targets 2013 Equity Raise

Spain’s Endesa hopes to complete a planned $8bn capital increase for its Enersis LatAm holdco in 1Q 2013, it says, and will put it to a shareholder vote in December. Enersis had hoped to have the vote this month when first announcing the process, but had to backtrack when investors raised concerns and regulators imposed conditions, including an independent evaluation. At issue was Endesa’s contribution with assets, rather than cash, and whether those assets were being valued correctly at $4.86bn. New independent valuations of the Endesa assets are expected to be ready by mid-October. Enersis plans to use proceeds from the capital increase, designed to streamline Endesa’s holdings in LatAm, to fund merger and acquisition opportunities, advance greenfield projects and buy minority interests.