Enel preps to reorganise renewables in Central, South America

Italian energy major Enel SpA (BIT:ENEL) is initiating the process to reorganise its non-conventional renewable energy businesses in Central and South America into its Chile-based, majority-owned unit Enel Americas SA (NYSE:ENIA).

Enel said in a statement today that the board of Enel Americas has resolved to start the process for the approval of a merger that will simplify the group corporate structure. The planned integration concerns the group’s existing non-conventional renewable assets in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Panama and Peru, but excludes those in Chile.

The transaction will require an amendment of the by-laws of Enel Americas to eliminate existing limitations whereby a single shareholder cannot hold more than 65% of the voting rights. A month ago, the Italian group raised its stake in Enel Americas to 65% by settling two share swap transactions with an unnamed financial institution.

Enel noted it will support the plan if it is conducted under market terms and conditions, and if it ensures that Enel Americas has the financial position to fuel the future development of the renewable energy activities and the growth prospects of the company. That favourable preliminary opinion is subject to an assessment by the group of the final terms and conditions, it added.

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