Argentina-based energy group Andes Energia has announced that it is planning to purchase an indirect 78.44 percent interest in the electricity distributor Empresa Distribuidora de Electridad de La Rioja (EDELAR).

Andes Energia has finalized an option deal to enable it to purchase the stake in EDELAR, according to the energy group. According to the terms of the purchase deal, Andes Energia will offer $1.5m. To exercise the option, the company will have to pay an additional $5.29m in 90 days of acceptance, and afterwards, a remaining amount of $15m will be paid in two years, which is subject to an annual interest of 12.5 per cent.

Neil Bleasdale, Chairman of Andes Energia, said: “This is an exciting opportunity for us to expand our electricity distribution business, and we hope to complete this transaction by the end of this year.”

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