Enersis Conisders Adding ADRs to Equity Sale

Chile’s Enersis is considering offering part of its planned CLP2.84trn ($6.03bn) equity capital increase in foreign markets through the issuance of ADRs, it says. No definitive plans have been made, though the unit of Spain’s Endesa notes it is in discussions with 16 Chilean and international potential bookrunners, including, BTG Pactual, Bank of America Merrill Lynch, Banchile, BBVA and Credit Suisse. The electricity holdco plans to offer 16.44bn shares at CLP173.00 per share. The timing remains to be determined for the follow-on, which was approved last month after much discussion with regulators and minority holders. Endesa plans to subscribe its portion of the transaction with its LatAm assets that don’t already belong to Enersis, and needed several months and multiple outside evaluations to reach agreement on the assets’ value. The process will raise funds for acquisition opportunities and streamline Endesa’s operations in LatAm by placing all of its assets under Enersis.