Thursday , January 21 2021

AFP Cuprum and Habitat are hiring advice from Asset Chile to analyze the merger of Enel Américas

More than two months ago, Enel Américas announced that it will embark on a merger that will lead to the acquisition of the renewable energy subsidiaries that Enel Green Power (EGP) owns in the region, with the exception of Chile.

For this reason AFP is in the process of analyzing this transaction, but as a business of this size is not straightforward, two AFPs decided to outsource outsourcing: Habitat and Cuprum contacted Asset Chile to advise on the operation, to get a complementary view of the internal study that all administrators will be conducting.

The result of this advice will be a report that Asset Chile will submit to both AFPs, probably next week, say informed sources. The company already has experience in this matter; in fact, they were hired by Enel Generación Chile to publish a report in 2017 as independent evaluators for the reorganization proposed by Enel Chile.

While some investors think the transaction is positive in that it makes sense to merge renewables with traditional energy; What would be required with this advice is to carry out a more detailed analysis of the transaction, the valuation of the assets and the composition of the shares after a transaction.

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The above, given that the operation will result in increased Italian involvement in Enel Américas, producing a change in the bylaws. All this without having to resort to a takeover offer, which would be another way to increase your stake in the company.

This advice is in line with the fiduciary duty that the AFPs must have, and with that they hope to get an informed opinion on the merger decision they will have to take at the shareholders meeting on December 18.

However, David Jana, employed by the EGP Americas board of directors, estimated the value of that company’s assets in a range of between US $ 6,053 million and US $ 6,840 million. Pablo D’Agliano, meanwhile, estimated up to US $ 7,025 million. Banchile (signed by Enel Américas’s board of directors) estimated between US $ 5.7 billion and US $ 6.2 billion. And Santander, between US $ 6,000 and US $ 6,800 million.

The process, which will be treated as a related party operation (OPR), is another of the various reorganizations the company has undertaken, such as, for example, splitting the old Enersis in two, Enel Chile and Enel Américas; or the merger of Enel Chile with Enel Green Power Chile, both with investor controversy, which took place in 2016 and 2018.

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