Essal shareholders meet to establish share price for upcoming sale

- Wednesday, September 28, 2011

Essal shareholders meet to establish share price for upcoming sale

Shareholders of Chilean water utility Essal met this week to establish the stock price for the government's sale of its stake in the company, local press reported.

Essal shareholders on Monday (Sep 26) met with government officials from state development agency Corfo, through which the government holds 45.5% of the utility.

Last December, the government announced it would sell its stake in four water companies to pay for reconstruction following the massive 8.8-magnitude earthquake that struck central-southern Chile in February.

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The government raised some US$984mn in June with the sale of a 30% stake in metropolitan utility Aguas Andinas, while the state share in Essbio and Esval was sold for US$564mn.

Corfo reaffirmed its decision to keep at least a 5% stake in Essal, as a way to preserve its right to veto operations involving the transfer of water rights and concessions, according to the report.

Essal, which serves southern regions X and XIV, is controlled by France's Suez Environnnement.