Enel Chile has increased its stake in the company’s electricity generation division Enel Generación Chile, and taken over its renewables company Enel Green Power Latin America.
The restructuring follows minority shareholders in Enel's Chilean businesses accusing the company of a conflict of interests after its Italian parent said it had no plans to continue investing in conventional generation in the country, but would instead concentrate on renewables through Enel Green Power (EGP).
The reorganisation is part of the Italian group’s strategic plan, and the company intends to make further reductions in the number of its operating companies in South America, Enel added.
Enel’s Chilean subsidiary, Enel Chile, has increased its stake in the company’s electricity generation division, Enel Generación Chile, from around 60% to 93.55% of share capital, the company announced.
This came following a successful tender offer for all of the shares held by minority shareholders, Enel stated.
Enel Chile needed to increase its stake in Enel Generación Chile to more than 75% of share capital for the tender offer to be successful, the Italian parent company added. Shareholders who owned about 33.6% of the generation company accepted the tender offer.
Renewables company Enel Green Power Latin America will also be merged into Enel Chile, effective from 2 April, the company announced.
Enel CEO Francesco Starace said: "Enel Chile now has a cleaner corporate structure that ensures optimal coverage of the entire value chain."
EGP owns 476MW of operational wind farms in Chile, according to Windpower Intelligence, the research and data division of Windpower Monthly, and has a further 270.1MW in various stages of development.
Enel Generacion Chile, meanwhile has two wind projects, according to its website: the 18.15MW Canela project and the 60MW Canela II.
The reorganisation is part of Enel’s ‘Group Simplification’ from its 2018-2020 strategic plan, the company stated.
Following the reorganisation of its Chilean businesses, Italian parent company Enel has increased its stake in Enel Chile from 60.6% to "around 62%", it said.
Enel expects further reductions in the number of its operating companies in South America, it added. The group had 53 companies in the continent at the end of 2017, but expects to have fewer than 30 in the region by 2020.
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