Enel grows in South America. The group announces in a note to have increased its stake in the capital of the Chilean subsidiary Enel Américas from 57,2 to 62,3%. The consideration paid amounts to 701 million dollars, equal to approximately 639 million euros, paid in full with cash flows from current operations.
The novelty is the result of the regulation of two share swap transactions entered into in June last year with a financial institution for the acquisition of up to 5% of the share capital of Enel Américas.
In detail, Enel acquired nearly two and a half billion ordinary shares and over 26 million American Depositary Shares (Ads) of Enel Américas, each representing 50 ordinary shares.
“In April 2020 Enel stipulated two additional share swap contracts – recalls the note – to acquire, on dates expected to occur by the end of 2020, additional ordinary shares and Ads of Enel Américas up to a further 2,7%, reaching up to 65% of the company's share capital".
The transactions are consistent with one of Enel's financial objectives: to reduce the presence of minority interests in the South American subsidiaries.
Again with reference to the activities in Latin America, Enel also informs that its subsidiaries in Chile (Enel Chile and Enel Generación Chile) have decided to accelerate the closure of the Bocamina coal plant, in Coronel.
In particular, Enel Generación Chile will request the Chilean National Energy Commission to authorize the cessation of operations of units 1 and 2 (128 and 350 MW) of the plant by December 31, 2020 and May 31, 2022, respectively.
The closure has accelerated compared to what was planned by Enel Generación Chile in the National Decarbonization Plan signed with the country's Ministry of Energy on June 4, 2019, which envisaged the closure of Bocamina I by the end of 2023 and that of Bocamina II by 2040.
Il net book value of the two Units of Bocamina amounts to approx 790 million euro at Enel Group level, including dismantling costs. The economic impact will be recorded in the half-year financial report of the Enel group at June 30, 2020, but - the company assures - it will not affect the dividend.
Returning to Italy from Enel, another announcement arrives today. After receiving the go-ahead from the Mise, the giant led by Francesco Starace gave the go-ahead for the early closure of Group 2 of the Federico II thermoelectric plant in Brindisi starting January 2021, XNUMX.
“It is – explains Enel in a note – the first of the four coal-fired production units of the plant which is about to be definitively closed”.
The site will be converted into a very high-efficiency gas-fired plant necessary to ensure the complete closure of the Brindisi coal-fired plant by 2025 and at the same time to ensure the safety of the national electricity grid.
