Enel enters into share swap to increase stake in Chilean subsidiary

Italian renewable energy developer Enel has entered into two share swap agreements with a financial institution to increase its stake in Enel Chile, for a maximum of 3 per cent of capital, from the current 61.9 per cent.

By virtue of these swap transactions, Enel may acquire up to 1,763,747,209 ordinary shares of Enel Chile; and up to 6.224.990 American Depositary Shares (ADS) of Enel Chile, each of which is equivalent to 50 ordinary shares. The transaction is expected to close before the final quarter of 2020.

The legal aspects of the transaction were handled by a team of the group’s internal legal department, composed of Alessandro Lomoro and Joaquin Valcarcel.

The aforementioned ordinary and ADS shares of Enel Chile together represent up to 3.0 per cent of the company’s capital. The number of ordinary and ADS shares of Enel Chile actually purchased by Enel under the listed share swap transactions will depend on the ability of the financial institution that acts as counterparty to carry out the envisaged hedges in the context of the transactions themselves.

The consideration for the ordinary shares of Enel Chile purchased by Enel will be based on the prices at which the financial institution will hedge against the relevant share swap transaction. As for the ADS, the consideration will instead be based on the weighted average prices for the volumes of the same ADSs during the period in which the financial institution will carry out its coverage with respect to the corresponding share swap transaction.