NEW YORKà‚–Endesa SA has acquired an additional 2.27 percent of the share capital of the Brazilian electricity distributor Coelce. The acquisition was made in the stock exchange by its 100 percent affiliate Endesa Internacional for an approximate price of R$18.5 million (Euro 11.16 million).
The stock acquired was part of a group of nominative Class A preferred shares offered in an auction on July 14th. Endesa bought a total of 3.54 million shares at a price of R$5.21 (Euro 3.15) per 1,000 shares.
With this acquisition, Endesa has strengthened its holding in Coelce as, together with 64 percent-owned Enersis Group, it now holds over 91 percent of the capital with voting rights and close to 59 percent of the company’s total share capital.
This new acquisition is a clear evidence of both Endesa’s confidence in the capabilities of the Brazilian distributor and its long-term commitment towards the Brazilian market, considered to be a priority within Endesa’s investment strategy.
Within the framework of this investment commitment, on June 21st, Endesa, through its affiliate CIEN, started the commercial operation of the 507 km. long, 500 kV and 1,000 MW capacity interconnection line between Argentina and Brazil.
Additionally, Endesa is speeding up the construction of a second line between both countries, contributing with an additional 1,000 MW capacity to meet the demand of energy from the Brazilian market. Endesa’s intention is to achieve a lower construction time with respect to the first line in order to advance as much as possible the start of its commercial operation.
In both projects, Endesa’s total investment will be over $650 million (Euro 706.5 million).
In Brazil, Endesa controls the distribution companies Cerj (Rio de Janeiro) and Coelce (Fortaleza), the hydroelectric plant at Cachoeira Dourada and the trading companies CIEN and CEMSA.