Enersis Plugs Ahead with Equity Plan

Enersis plans to continue with its planned $8.02bn capital increase, comply with regulator’s conditions and seek necessary valuations of assets to be put up by parent Endesa in the operation, it says. The Chile-based regional energy company pushed back the shareholder meeting to approve the plan in order to allow for adjustments. It does not give a new date for the meeting, originally scheduled for September 13. Last week, regulators found a conflict of interest in the proposed operation aimed at streamlining Endesa’s holdings in LatAm. Enersis’ parent Endesa was expected to participate with up to $4.86bn in assets, a valuation arrived at by an outside source. Shareholders, particularly pension funds holding more than 10% of Enersis, and analysts have opposed the planned capital increase, saying the Endesa assets are overvalued. Banchile-Citi, for one, found a 29% premium to market price. The proposed transaction is a deal between two related parties, regulators found, and should be approved by an absolute majority of board members excluding those directors who represent Endesa. Regulators also ordered the electricity company to seek a new valuation of the Endesa assets. Enersis plans to use proceeds from the capital increase to fund merger and acquisition opportunities, advance greenfield projects and buy minority interests.