PSEG to Shop Chile Distributor

Public Service Enterprise Group (PSEG) plans to sell its stake in Chile’s SAESA electricity distribution group. The New Jersey-based energy holding company has hired Credit Suisse as an advisor. It plans to use proceeds for the repurchase of $200m in 10% of 2009 notes. SAESA includes the Frontel, Edelaysen, STS, Luz Osorno and PSEG Generacion companies and reaches 26% percent of the country’s population. “The SAESA group of companies has grown rapidly and we are pleased with the dramatic improvement in operations over the last two years in particular,” says Matthew McGrath, president of PSEG Global. “These are very good companies in high growth areas. The market today is providing attractive valuations for quality Latin American electric distribution companies,” he adds. PSEG also has small investments in electric generation plants in Venezuela. PSEG is a diversified energy company based in New Jersey.