(Parsippany, NJ – March 9, 2001) PSEG Global announced today that it has reached agreement to purchase approximately 94% of Sociedad Austral de Electricidad S.A. (Saesa) and all of its subsidiaries from Compa��de Petr�leos de Chile S.A. (COPEC). Additionally, PSEG Global reached agreement to purchase directly from COPEC approximately 14% of Empresa El�rica de la Frontera S.A. (Frontel) not owned by Saesa. The purchase, held through a private auction, will total approximately $460 million. JPMorgan acted as exclusive financial advisor of PSEG in the transaction.
The terms of the transaction call for PSEG Global to launch a follow-on tender offer on the Santiago stock exchange for the remaining approximately six percent of Saesa on same terms. Among other conditions, the closing of the transaction is subject to Argentine provincial regulatory approval, which is expected to take several months.
The Saesa group of companies consists of four distribution companies and one transmission company that provide service in Regions VII through XI in the southern part of Chile. Additionally, Saesa owns a fifty percent interest in the Argentine distribution company Empresa El�rica del R�Negro S.A. Collectively, the companies serve more than 615,000 customers.
“This acquisition further demonstrates PSEG Global’s commitment to the Latin American market. It solidifies our position in Chile and is a perfect fit in PSEG Global’s strategy of building sustainable businesses around the world,” said Robert L. Logan, President of PSEG Americas, the regional business unit of PSEG Global responsible for operations in Latin America. “We are excited about the prospect of working together with the employees and customers of the Saesa group of companies to deliver a high level of energy services safely and efficiently to the peoples and communities of Chile and Argentina.”
The Companies in the Saesa group include:
Saesa, an electric distribution company in Chile’s VIII and IX Regions with 230,000 customers;
Frontel, an electric distribution company which operates in the VII, VIII and IX Regions of Chile with 210,000 customers;
Empresa El�rica de Ais�S.A. (Edelays�, a vertically integrated company engaged in generation, transmission and distribution of electricity in Chile’s X and XI Regions with 24,000 customers;
Sistema de Transmisi�n del Sur S.A. (STS), a transmission company that owns and operates 330 miles of 66 kV transmission lines, and operates and maintains an additional 160 miles of transmission lines owned by third parties;
Compa-�El�rica de Osorno S.A. (Creo), an electric distribution company in Chile’s X Region with 12,000 customers; and
Empresa El�rica del R�Negro S.A., a vertically integrated company which generates, transports and distributes electricity in the province of R�Negro in the southern part of Argentina with 140,000 customers.
With this acquisition, PSEG Global will provide electricity to over 3.6 million customers in Latin America through its interests in 12 distribution companies including four other distribution companies, EDEERSA, EDEN, EDES and EDELAP in Argentina, RGE in Brazil, Chilquinta in Chile and Luz del Sur in Peru. In addition, PSEG Global has ownership interests in generation projects totaling 3,100 MW of installed capacity located in the United States, Argentina, China, and Venezuela.
PSEG Global is a direct subsidiary of PSEG Energy Holdings and an indirect subsidiary of Public Service Enterprise Group (PSEG) (NYSE:PEG). To learn more about PSEG or PSEG Global visit www.pseg.com.
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