E-CL Falls Post-FO

EC-L shares sank 5.2% to CLP1,199.70 in the day following a CLP509bn ($1.05bn) follow-on offer that was more than 2x bid. Chilean miner Codelco sold 424.30m shares, or its entire 40% stake, in power company E-CL at CLP1,200.00 each, pricing Friday morning after closing books Thursday night. The price came at a 5.2% discount to Thursday’s CLP1,265.20 what closing price. Total demand hit CLP1.239trn ($668m), E-CL says. Pension funds accounted for 32.8% of the deal, other domestic institutions 18.0%, foreign institutions 26.6%, large non-institutions 8.8% and retail 12.9%. The sale of the asset raises funds for state-owned Codelco’s investment plan, including $1.5bn-$3.0bn this year, and is part of the government’s strategy to meet fundraising needs for earthquake-related reconstruction. France’s GDF Suez still holds a 52.4% stake in the power company, in addition to a 7.6% free float. LarrainVial and JPMorgan managed the sale.