Dec. 29, 2000AES Corp. has successfully completed its tender offer for Chilean power generator Gener SA for about $1.3 billion.
The Virginia based power company said it purchased 3.5 billion shares of Gener�s common stock representing 61.57% of the issued and outstanding capital stock. These shares cost about $842 million.
Simultaneously, AES exchanged all of Gener�s American Depositary Shares for AES common shares at $16.50 per ADS. On Dec. 29, approximately 21,480,377 Gener ADSs had been validly tendered and all had been accepted for exchange by AES. Additionally, approximately 7,397,606 Gener ADSs are subject to notices of guaranteed delivery. The ADRs represent about 25% of Gener�s capital stock.
Assuming all Gener ADSs subject to guaranteed delivery are received and taking into account the Gener shares purchased in the Chilean offer, the Gener shares and ADSs tendered represent approximately 96.5% of the outstanding shares of capital stock of Gener.
Dennis W. Bakke, President and Chief Executive Officer of AES, said, “AES is excited about its acquisition of one of the most significant participants in the electric sector in Chile.”
Naveed Ismail, President of AES Andes, added, “We are extremely gratified with the results of our long efforts to enter the Chilean market which we believe is strategic to AES’s overall Latin American strategy.”
AES launched plans in November to take over the Chilean company in what appeared to have been a bidding war with French company TotalFinaElf. But TotalFinaElf dropped out after AES agreed to let Total acquire Gener�s Argentine generation assets for $652 million.
Gener, with its 50% stake in a related company Guacolda, owns 23.5% of Chile�s electric generation capacity. It also has interests in generation in Colombia, Argentina, and Dominican Republic and in natural gas transportation and coal mining.