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Endesa Seeks Investor Support on $8 Billion Fundraising Revamp

Spain’s Endesa SA (ELE) sought investor support for an $8 billion plan that would sell stock in Enersis SA (ENERSIS), its affiliate in Latin America, and transfer stakes it owns in 12 companies to the unit.

The proposal “makes sense” because it will simplify the organizational structure and put its investments in the region into Enersis, Endesa said in a presentation to analysts released in a filing to the Securities and Exchange Commission yesterday. Endesa, a unit of Enel SpA (ENEL) of Italy, owns 60.6 of Enersis.

The stakes being transferred account for Endesa’s share of the capital that Santiago, Chile-based Enersis is seeking to raise by selling new shares to its existing shareholders. Minority shareholders would inject the remaining 39.4 percent in cash, according to the presentation.

The proposal will simplify the corporate structure of Endesa’s holdings in the regions, Endesa said. Enersis already participates in the management of nine of the 12 companies in which it would receive stakes from its parent. Those include Endesa’s Brazilian unit, Colombia’s Emgesa SA and Codensa SA, and Brazil’s Ampla Energia e Servicos SA (CBEE3) and Ampla Investimentos e Servicos, Endesa said.

“Putting everything under the same vehicle makes sense from many points of view,” Endesa said in the filing. “The transaction aims at reinforcing Enersis as the only investment vehicle of Endesa in the region.”

Transfer of the 12 stakes will boost net income at Enersis by about $323 million, 56 percent of it in Brazil and about a third in Colombia, Endesa said.

The plan to sell shares was announced on July 26, and led to the biggest decline in Enersis stock since May 2003.

To contact the reporter on this story: Alex Morales in London at

To contact the editor responsible for this story: Reed Landberg at

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