Colombian regulator approves merger to create Enel Colombia

Chile-based electric utilities group Enel Americas SA (NYSE:ENIA) announced on Wednesday that it has secured regulatory approval to merge four of its subsidiaries in Colombia and Central America into a new company with a corporate name Enel Colombia SA ESP.

The Colombian government’s regulatory agency greenlit the fusion of power generation business Emgesa SA ESP, power distributor Codensa SA ESP, renewables firm Enel Green Power Colombia SAS and Chilean entity Essa2 SpA.

Essa2 holds Enel Green Power’s clean energy assets in Panama, Costa Rica and Guatemala.

The merger proposal stems from last year’s agreement between Enel Americas and Colombian power and gas company Grupo Energia Bogota (GEB) to combine their holdings in Emgesa and Codensa with Enel’s green business in the region into one giant vertically integrated utility.

Enel Americas is the largest shareholder in Colombia-based Emgesa and Codensa, followed by GEB and minority shareholders. After the merger, the shareholder structure of Enel Colombia will follow the same pattern -- Enel Americas will control a 57.345% stake, GEB will hold 42.515%, with minority shareholders owning 0.140%.

Once all four subsidiaries combine their assets, Enel Colombia will start its life with over 4,100 MW of installed capacity across thermal power, hydro and solar located in four countries, a network of power lines and substations, and more than 3.5 million of Codensa’s customers.

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