ELEQ: International Endesa: Significant Event regarding Enersis' capital increase

  ELEQ: International Endesa: Significant Event regarding Enersis' capital
  increase

UK Regulatory Announcement

NEW YORK

                              SIGNIFICANT EVENT

Attached is the press release issued by Endesa, S.A. regarding the capital
increase at Enersis S.A.

Madrid, 7 December 2012

                             ENDESA PRESS RELEASE

Santiago, 7 December 2012.- Endesa Spain hereby discloses to the market and
the general public that it has submitted a proposal to the private
pension-fund managers, AFPs, regarding the terms and conditions of the capital
increase to be presented at the Extraordinary Shareholders’ Meeting scheduled
for 20 December this year which the company considers is of interest to all
parties. AFP Capital, AFP Cuprum, AFP Habitat, AFP Planvital and AFP Provida
have considered our proposal to be advantageous to all Enersis S.A.
shareholders, who must vote on the proposal at said meeting.

The main features of our proposal are as follows:

  *The capital increase will include the issuance of 16,441,606,297 Enersis
    shares at a price of CLP 173 per share. Taking yesterday’s closing
    exchange rate of CLP 477/USD, this amounts to USD 5,963 million.
  *Endesa Spain would contribute 100% of the electricity assets held by
    Endesa Latin America through its Conosur subsidiary to Enersis in exchange
    for 9,967,630,058 Enersis shares. This values Conosur at USD 3,615 million
    taking yesterday’s closing exchange rate.
  *Enersis’ remaining shareholders may subscribe up to 6,473,976,239 Enersis
    shares, which at the same exchange rate amounts to USD 2,348 million.

The proposal also includes the following:

  *Enersis would become Enel/Endesa’s sole investment vehicle in Latin
    America in the power generation, distribution and sales businesses, except
    for those that Enel Green Power S.p.A. currently oversees or may undertake
    in future in the area of renewable energies, as stated in the letter sent
    to Enersis. This commitment, in addition to other announcements by Endesa
    in recent weeks and disclosed to the public, will be ratified by a
    statement from an Enel/Endesa representative at Enersis’ Shareholders’
    Meeting.
  *The shares to be issued will be of the same series as those currently
    outstanding.

Endesa Spain has stated repeatedly since the proposed deal was presented that
it has always sought the benefit of Enersis and its shareholders and that it
is open to entering into a broad agreement to achieve this. If approved, the
capital increase will make Enersis the leading private electricity utility in
Latin America and the only regional operator, with businesses in the region’s
main markets.

Endesa Spain recognises that the contribution of all parties has enabled it to
put forward a proposal ensuring that when the capital hike is completed it
will be advantageous for both Enersis and all shareholders.

Contact:

International Endesa
 
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