When Italy’s largest power company, Enel, and its
Spanish subsidiary Endesa, looked for global growth
opportunities, Latin America’s demographics made
the region a frontrunner. Their plan to achieve this growth
involved raising capital through a local Latin American
subsidiary. The move offered a double benefit: bringing in
expansion cash and a chance to streamline a tangled corporate
structure that was a result of years of acquisitions.
EQUITY FOLLOW-ON: Enersis $6 bn equity raise
The Chilean power company overcame disagreement with pension funds and a skeptical market to raise funds for expansion and streamline a complicated group structure
Endesa, with assets scattered across five Latin American
countries, chose Chilean power company Enersis as the unit
through which to consolidate its regional operations.
"Endesa considered it best to have a single vehicle, and
that Enersis offered the best option for growth, with an
attractive, diversified asset base across the region," says
Eduardo Escaffi, chief financial officer of Enersis.
Under the consolidation and capital-raising plan, Endesa
would buy around half of Enersis’s rights issue by
putting forward its assets. The other half...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.