Enel Americas approves capital increase of US 3 Billion

Published on Tuesday, 30 April 2019

  • The transaction was approved with 71.97% in favor, which will optimize the company's operation in Brazil and ensure its growth.

 

Santiago, April 30, 2019 -   This morning the Extraordinary Shareholders Meeting of Enel Americas approved a capital increase of US$ 3 billion, which aims to strengthen the flexibility of the company's balance sheet to prepare it for a new stage of growth.

Out of the total funds raised with this operation, US$ 2,650,000,000 will be earmarked for the payment of the loan that Enel Brasil S.A. contracted with Enel Finance International, which replaced debts of Enel Brasil S.A. with banking entities for the acquisition of Eletropaulo, currently Enel Distribuição São Paulo. Another US$ 350 million will be allocated to the restructuring of the pension fund in Enel Brasil that was consolidated as a result of the acquisition of Enel Distribuição São Paulo.

The improvement of the company’s equity structure will make it possible to take advantage of investment opportunities through mergers and acquisitions and purchases of minority interests.

"We are very happy, since this was a project for all shareholders. We tried to reach a consensus on the position so that it would have the maximum support and this was demonstrated today with 71.97% of votes in favor of the capital increase. We will use these funds to optimize the company’s operation in Brazil, which will also allow for greater cash flow from Enel Américas. This approval will open the possibility to lay the foundations for future opportunities for sustainable growth," explained Maurizio Bezzeccheri, CEO of Enel Américas.

Enel Américas - a subsidiary of the Enel Group - is one of the main privately-owned multinational electric power corporations in South America. Currently, it holds direct and indirect participation in electric power generation, transmission, and distribution businesses and related areas. It has operations in four countries in the region: Argentina, Brazil, Colombia, and Peru.